WT/REG405/1  
25 June 2020  
(20-4428) Page: 1/38 
Committee on Regional Trade Agreements    
 
 
FACTUAL PRESENTATION  
COMPREHENSIVE AND EN HANCED PARTNERSHIP A GREEMENT BETWEEN THE  EUROPEAN  UNION 
AND THE REPUBLIC OF ARMENIA (SERVICES)  
Report by the Secretariat  
This report, prepared for the consideration of the Comprehensive and Enhanced 
Partnership Agreement  between the European Union and the Republic of Armenia , has 
been drawn up by the WTO Secretariat on its own responsibility and in full consultation 
with the  Parties. The factual presentation reproduces as closely as possible the 
terminology used in the Agreement and in the comments provided and does not imply 
official endorsement or acceptance by the Secretariat of such terminology. The report 
has been drawn up in accordance with the rules and procedures contained in the 
Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671) and 
thus does not imply any value judgement by the Secretariat regarding the contents of 
the Agreement.  
Any techn ical questions arising from this report may be addressed to Peter Milthorp 
(tel: +41 22 739 5016) . Any statistical questions arising from this report may be 
addressed to  Ms. Rowena Cabos (tel: +41 22 739 5 185). 
 
 
  WT/REG 405/1 
 
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  Table o f Contents  
Page 
1   TRADE ENVIRONMEN T ................................ ................................ ................................ . 4 
1.1   Trade in services  ................................ ................................ ................................ .........  4 
2   CHARACTERISTIC E LEMENTS OF THE AGREE MENT  ................................ ......................  8 
2.1   Background information  ................................ ................................ ...............................  8 
3   PROVISIONS ON TR ADE IN SERVICES AND INVESTMENT  ................................ ...........  9 
3.1   Scope and definitions  ................................ ................................ ................................ ..10 
 Denial of Benefits  ................................ ................................ ................................ .......10 
 General provisions on trade in services  ................................ ................................ ......... 10 
3.3.1    Market access  ................................ ................................ ................................ ......... 10 
3.3.2    National and MFN treatment  ................................ ................................ ...................... 11 
3.3.3    Commercial presence  ................................ ................................ ............................... 11 
3.3.4    Movement of natural persons  ................................ ................................ .................... 12 
3.4   Liberalization Commitments  ................................ ................................ ......................... 14 
3.4.1    The European Union  ................................ ................................ ................................ .14 
3.4.1.1    MFN and horizontal commitments  ................................ ................................ ........... 14 
3.4.1.2    Business services  ................................ ................................ ................................ ..17 
3.4.1.3    Communication services  ................................ ................................ ........................ 17 
3.4.1.4    Construction and related engineering services  ................................ .......................... 18 
3.4.1.5    Distribution services  ................................ ................................ .............................. 18 
3.4.1.6    Education services  ................................ ................................ ................................ 18 
3.4.1.7    Environmental services  ................................ ................................ .......................... 18 
3.4.1.8    Financial services  ................................ ................................ ................................ ..18 
3.4.1.9    Health related and social services  ................................ ................................ ........... 19 
3.4.1.10    Tourism and Travel related services  ................................ ................................ .......19 
3.4.1.11    Recreational, cultural and sporting services (other than audio -visual services)  ............ 19 
3.4.1.12    Transport services  ................................ ................................ ............................... 19 
3.4.1.13    Services auxiliary to all modes  of transport  ................................ ............................ 19 
3.4.1.14    Other transport services  ................................ ................................ ....................... 20 
3.4.1.15    Energy services  ................................ ................................ ................................ ...20 
3.4.2    Armenia  ................................ ................................ ................................ ................. 20 
3.4.2.1    MFN and horizontal commitments  ................................ ................................ ........... 20 
3.4.2.2    Business services  ................................ ................................ ................................ ..22 
3.4.2.3    Communication services  ................................ ................................ ........................ 22 
3.4.2.4    Construction services  ................................ ................................ ............................ 22 
3.4.2.5    Distribution services  ................................ ................................ .............................. 23 
3.4.2.6    Educational services  ................................ ................................ .............................. 23 
3.4.2.7   Environmental services  ................................ ................................ .......................... 23 
3.4.2.8    Financial services  ................................ ................................ ................................ ..23 
3.4.2.9    Health and social services  ................................ ................................ ...................... 23 WT/REG 405/1 
 
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  3.4.2.10    Tourism and related services  ................................ ................................ ................ 23 
3.4.2.11    Recreational and cultural and sporting services  ................................ ....................... 23 
3.4.2.12    Transport  ................................ ................................ ................................ ........... 23 
3.5   Regulatory Provisions  ................................ ................................ ................................ ..24 
3.5.1    Domestic regulation  ................................ ................................ ................................ .24 
3.5.2    Recognition  ................................ ................................ ................................ ............. 24 
3.5.3    Subsidies  ................................ ................................ ................................ ................ 24 
3.5.4    Safeguards  ................................ ................................ ................................ ............. 24 
3.6   Sector -Specific Provisions  ................................ ................................ ............................ 25 
3.6.1    Computer services  ................................ ................................ ................................ ...25 
3.6.2    Postal Services  ................................ ................................ ................................ ........ 25 
3.6.3    Electronic communication network and services  ................................ ........................... 25 
3.6.4    Financial Services  ................................ ................................ ................................ ....26 
3.6.5    Transport Services  ................................ ................................ ................................ ...26 
4   GENERAL PROVISIO NS OF THE AGREEMENT  ................................ .............................  27 
4.1   Transparency  ................................ ................................ ................................ ............. 27 
4.2   Current payments and capital movements  ................................ ................................ .....27 
4.3   Exceptions  ................................ ................................ ................................ ................. 28 
4.4   Accession and withdrawal  ................................ ................................ ............................ 28 
4.5   Institutional framework  ................................ ................................ ............................... 28 
4.6   Dispute settlement  ................................ ................................ ................................ .....29 
4.7   Relationship with other agreements concluded by the Parties  ................................ ........... 31 
4.8   Government procurement  ................................ ................................ ............................ 33 
4.9   Intellectual property rights  ................................ ................................ .......................... 33 
4.10   Competition  ................................ ................................ ................................ ............. 35 
4.11   Environment and labour  ................................ ................................ ............................ 36 
 Electronic Commerce  ................................ ................................ ................................ .37 
4.13   Small and medium -sized enterprises  ................................ ................................ ........... 37 
 
  WT/REG 405/1 
 
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Key Facts  
 
Parties to the Agreement:  European Union and the Republic 
of Armenia  
 
Date of Signature:    24 November 2017  
 
Date of Entry into Force:  1 June 20181 (provisional 
application ) 
 
Date of Notification:   23 August 2019  
 
Full implementation:   1 June 2018  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Comprehensive and Enhanced Partnership Agreement (hereinafter referred to as "the 
Agreement") concluded between the European Union (hereinafter the EU) and the Republic of 
Armenia  (hereinafter Armenia)  is the EU's  41st and Armenia's 10th notified  regional trade agreement 
(RTA).  
1.2.  In 201 8, with a population of 51 3.9 million, the EU's GDP was estimated at USD 18,783 billion, 
while that of Armenia, with a population of 2.96 million was estimated at USD 12.4 billion.  
1.1  Trade in services  
1.3.  In 201 8, the EU's shares of total commercial services exports and imports were 25. 13% and 
20.62% respectively, while Armenia's share was 0. 035% for exports and 0. 04% for imports of 
services. With total commercial services exports of USD 1,089 billion, and imports  of USD 865 billion, 
the EU was the world's largest exporter and importer of commercial services. Armenia was the 
81st largest exporter ( USD 2,018 billion) and 85th largest importer ( USD 2.174 billion).  
1.4.  Charts 1.1a, 1.1b and 1.2  below shows global trade in commercial services for the EU and 
Armenia  (all based on data for the period 2010 -2018). The EU had a positive balance in its global 
trade in services, and Armenia a negative balance. For both Parties, trade in services has grow n 
during the period. Travel and transportation services account for a large share of services traded by 
the Parties with other business services also showing important exports and imports for the EU.   
 
1 According to the Parties t he Agreement shall enter into force on the first day of the second month 
following the date of deposit of the last instrument of ratification or approval. As of 20 April 2020, the Republic 
of Armenia, the European Parliament and 21 EU Member States have ratified the Agreement.  WT/REG 405/1 
 
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  Chart 1.1a EU: Trade in commercial services with world, 2010 -2018  
 
Note:  Based on BPM6.  
Source:  EU authorities and Eurostat.  
Chart 1.1b EU: Bilateral total trade in services, 2010 -2018  
 
Source:  EU authorities (2015 -2017) and Eurostat.  
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services0100200300400500600700800900
2010 2011 2012 2013 2014 2015 2016 2017 2018A. EU imports from extra -EU
2010 -2018
(€ Billion)
0100200300400500600700800900
2010 2011 2012 2013 2014 2015 2016 2017 2018B. EU exports to extra -EU
2010 -2018
(€ Billion)
050100150200250300
2010 2011 2012 2013 2014 2015 2016 2017 2018Value (Euro billion)
Export ImportWT/REG 405/1 
 
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  Chart 1.2 Armenia: Trade in commercial services with world, 2010 -2018  
 
Note:  Based on BPM6.  
 No imports for Manufacturing services on physical inputs owned by others (2010 -2018); no trade 
data for Charges for  the use of intellectual property i.e. (2010 -2018).  
 Exchange rates to convert USD to Euro for 2010 -2018 are: 2010 (0.76); 2011 (0.72); 2012 (0.78); 
2013 (0.75); 2014 (0.75); 2015 (0.90), 2016 (0.90), 2017 (0.89) and 2018 (0.85).  
Source:  WTO Statistics dat abase and Armenian authorities (2015 -2017).  
 
1.5.  Charts 1.3 and 1.4 below depict each Party's foreign direct investment stocks with the world 
as well as the Party's FDI  flows with the world which have grown steadily during the period 2013 -17. 
While the EU is a net investor in the world, Armenia is a net recipient of FDI . Over the period there 
has been a steady increase in inward and outward FDI in the EU. Armenia's inwar d and outward FDI 
levels have remained stable. The EU is a net investor in Armenia. Its FDI stock in Armenia increased 
significantly in 2016  (1,662 million € in 2018).  
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services0.00.20.40.60.81.01.21.41.61.82.0
2010 2011 2012 2013 2014 2015 2016 2017 2018A. Armenia imports from world
2010 -2018
(€ Billion)
0.00.20.40.60.81.01.21.41.61.8
2010 2011 2012 2013 2014 2015 2016 2017 2018B. Armenia exports to world
2010 -2018
(€ Billion)WT/REG 405/1 
 
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  Chart 1.3 EU: FDI  stock and flow with Armenia and world, 2013 -2017  
 
Source:  Eurostat.  
Chart 1.4: Armenia: FDI stock and flow with world and FDI stock with EU  
 
Note:  Exchange rates to convert USD to Euro for 2013 -2017 are: 2013 (0.75); 2014 (0.75); 2015 (0.90); 
2016 (0.90); 2017(0.89) and 2018 (0.85).  
Source:  UNCTAD and Armenian authorities (2015 -2017).  
0.00.20.40.60.81.01.21.41.61.8
2013 2014 2015 2016 2017FDI stock with Armenia
(€ Billion ) 
Outward Inward
-100-50050100150
2013 2014 2015 2016 2017MillionsFDI flow with Armenia
(€ Million ) 
Outward Inward
01,0002,0003,0004,0005,0006,0007,0008,0009,000
2013 2014 2015 2016 2017FDI stock with extra -EU
(€ Billion )
Outward
Inward
0100200300400500600700800
2013 2014 2015 2016 2017FDI flow with extra -EU
(€Billion ) 
Outward
Inward
05001,0001,5002,0002,5003,0003,5004,0004,5005,000
2013 2014 2015 2016 2017 2018FDI stock with world
(€Million ) 
Outward
Inward
050100150200250300350
2013 2014 2015 2016 2017 2018FDI flow with world
(€ Million) 
Outward
Inward
02004006008001,0001,2001,400
2015 2016 2017FDI stock with EU
(€Million ) 
Outward
InwardWT/REG 405/1 
 
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  2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement is concluded between the E U and the European Atomic Energy Community and 
their Member States, of the one part, and Armenia of the other part. The Agreement was signed by 
the Parties on 24 November 2017 and entered into force (provisionally) on 1 June 2018 .2 It was 
notified to the WTO on 23 August 2019 under Article V of the GATS  in document S/C/N/959 .  
2.2.  The text of the Agreement is available from the following websites:  
European Union:  https://eur -lex.europa.eu/legal -content/EN/TXT/?uri=CELEX:22018A0126(01)  
Armenia:  https://www.mfa.am/fil emanager/eu/CEPA_ARM_1.pdf  (the Armenian text)  
2.3.  The Agreement contains 7 Titles and 12 Annexes  (Table 2.1) .  
2.4.  Title I contains objectives and general principles of the Agreement. With regard to trade, the 
Agreement aims to establish enhanced trade cooperatio n allowing for sustained regulatory 
cooperation in relevant areas, in compliance with the rights and obligations arising from WTO 
membership.  This Factual Presentation focusses mainly on Title VI of the Agreement  which deals 
with trade and trade related ma tters. 
Table  2.1 Structure of the Agreement  
Titles, Chapters  Title/description  
Preamble   
Title I  Objective s and General pr inciples  
Title II  Political Dialogue and Reform: Cooperation in the field of Foreign and Security Policy  
Title III  Justice, Freedom and Security  
Title IV  Economic Cooperation  
Title V  Other Cooperation Policies  
Title VI  Trade and Trade Related Matters  
Chapter 1  Trade in Goods  
Chapter 2  Customs  
Chapter 3  Technical Barriers to Trade  
Chapter 4  Sanitary and Phytosanitary Matters  
Chapter 5  Trade in services, establishment and electronic commerce  
Chapter 6  Current payments and movement of capital  
Chapter 7  Intellectual Property  
Chapter 8  Public Procurement  
Chapter 9  Trade and Sustainable Development  
Chapter 10  Competition  
Chapter 11  State owned enterprise s 
Chapter 12  Transparency  
Chapter 13  Dispute Settlement  
Title VII  Financial Assistance, and Anti -Fraud and Control Provisions  
Title VIII  Institutional, General and Final Provisions  
Annexes   
Annex I  Transport of Title V: Other Cooperation policies  
Annex II  Energy of Title V: Other cooperation policies  
Annex III  Environment of Title V: Other Cooperation policies  
Annex IV  Climate Action of Title V: Other Cooperation policies  
Annex V  Cooperation in the field of the Information Society of Title V: Other Cooperation policies  
Annex VI  Consumer Protection of Title V: Other Cooperation Policies  
Annex VII  Employment, Social Policy and Equal Opportunities of Ti tle V: Other Cooperation policies  
Annex VIII  Trade in Services and Establishment  
 
2 Provisional entry into force: 1 June  2018. The United Kingdom was a Member State of the European 
Union until 31 January 2020. The European Union and the United Kingdom have agreed a Withdrawal 
Agreement pursuant to Article 50 of the Treaty on European Union, which provides for a time -limited  transition 
period during which European Union law, with limited exceptions as provided for in the Withdrawal Agreement 
will apply to and in the United Kingdom. Further details are available in the communication from the United 
Kingdom (WT/GC/206) dated 1 February 2020 and the note verbal from the European Union (WT/LET/1462) 
dated 27 January 2020 notifying WTO members that the United Kingdom is treated as a member State of the 
European Union for the purposes of relevant international agreements for the dur ation of the transition period.  WT/REG 405/1 
 
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  Titles, Chapters  Title/description  
Annex VIII -A Reservations on Establishments of the EU  
Annex VIII -B Commitments on Cross -Border Services  of the EU   
Annex VIII -C Reservations on Key Personnel, Graduate Trainees and Business Sellers of the EU  
Annex VIII -D Reservations on Contractual Service Suppliers and Independent Professionals  of the EU  
Annex VIII -E Reservations  to Establishment of the Republic of Armenia  
Annex VIII -F Commitments on Cross Border Services  of the Republic of Armenia  
Annex VIII -G Reservations on Contractual Service s Suppliers and Independent Professionals  of the 
Republic of Armenia  
Annex IX  Legislation of the Parties and Elements for Registration, Control and Protection of 
Geographical Indications  
Annex X  List of Protected Geographical Indications  
Annex XI  Additional Covered Public Procurement  
Annex XII  Anti-Fraud and Control Provisions of Title V II: Financial Assistance and Anti-Fraud and 
Control Provisions  
 
2.5.  Chapters 1 -4 of Title VI deal with trade in goods. The Parties agree to provide each other most 
favoured nation (MFN) and national treatment in trade in goods (Articles 113 and 114 respectively).  
They agree not to impose  or maintain duties , taxes or other charges on exports in excess of those 
imposed on like goods destined for their domestic markets (Article 116); nor prohibitions or 
restrictions other than duties, taxes or other charges on imports or exports of any goods  from or 
destined for the other Party (Article 117). Article XI of the GATT 1994 including its interpretative 
notes is incorporated into and made part of the Agreement mutatis mutandis.  The Parties also agree 
that freedom of transit is essential for attain ing the objectives of the Agreement and provide for 
freedom of transit in accordance with Article V of GATT 1994, including its interpretative notes, and 
incorporates these into the Agreement mutatis mutandis  (Article 120) . The Agreement also has 
provision s on trade defence which maintains the Parties' rights and obligations under the relevant 
WTO Agreements  (Article 121);3 and exceptions under which the Parties' existing rights and 
obligations under Article XX of the GATT 1994 apply to trade in goods (Arti cle 122). The Parties also 
reaffirm their obligations under the WTO's TBT and SPS Agreements with respect to technical barriers 
to trade and sanitary and phytosanitary measures (Chapter s 3 and 4 ). They agree to pursue 
transparency and cooperation in these areas in order to facilitate access to each others' markets. In 
Title VIII the Parties  set out the governance framework for the Agreement.  
3  PROVISIONS ON TRADE IN SERVICES AND INVE STMENT  
3.1.  Title VI, Trade and Trade -Related matters, Chapter 5, Articles 141 -203 concern trade in 
services, establishment and electronic commerce. The Chapter is composed of 8 sections, Section 
A, General Provisions (Articles 141 -142), Section B, Establishment (Articles 143 -147), Section C, 
Cross -Border Supply of Services (Articles 14 8-152), Section D, Temporary presence of natural 
persons for business purposes (Articles 153 -157), Section  E, Regulatory Framework (Articles 158 -
192), Section F , Electronic Commerce (Articles 193 -199) Section G, Exceptions (Articles 200 -202) 
and Section H,  Investment (Article 203).  
3.2.  Annex VIII sets out the reservations and commitments of the Parties. Annex VIII -A contains 
the reservations of the EU on establishment in accordance with Article 144 of the Agreement; 
Annex  VIII-B contains the list of commitment s of the EU on cross -border services in accordance with 
Article  151 of the Agreement; Annex VIII -C contains the reservations of the EU on key personnel, 
graduate trainees and business sellers in accordance with Articles 154 and 155 of the Agreement; 
and An nex VIII -D contains the reservations of the EU on contractual service suppliers and 
independent professionals in accordance with Articles 156 and 157 of the Agreement. As regards 
Armenia, Annex VIII -E contains the reservations of Armenia on establishment i n accordance with 
Article 144 of the Agreement; Annex VIII -F contains the list of commitments of Armenia on 
cross-border services in accordance with Article 151 of the Agreement; and Annex VIII -G contains 
the reservations of Armenia on contractual service suppliers and independent professionals in 
accordance with Articles 156 and 157 of the Agreement . 
 
3 Article XIX of GATT 1994 and the Agreement on Safeguards, contained in Annex 1A to the WTO 
Agreement; Article 5 of the Agreement on Agriculture contained in Annex 1A of the WTO Agreement on special 
safeguard provisions; Article VI of GATT 1994, the Agreem ent on Implementation of Article VI of the GATT 
1994 contained in Annex 1A to the WTO Agreement and the Agreement on Subsidies and Countervailing 
Measures contained in Annex 1A to the WTO Agreement. These rights and obligations are not subject to the 
Agree ment's dispute settlement provisions.  WT/REG 405/1 
 
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  3.1  Scope and definitions  
3.3.  In Article 141 the Parties reaffirm their respective commitments under the WTO Agreement 
and set down arrangements for the progressive reciprocal liberalisation of establishment and trade 
in services and for cooperation on electronic commerce. Article 141. 2 provides that nothing in the 
Chapter shall be construed as imposing any obligation on the Parties with respect to government 
procurement under Chapter 8. The Chapter also does not apply to subsidies granted by a Party which 
are covered under Chapter 10  and to measures affecting natural persons seeking access to the 
employment market of a Party, nor does it apply to measures regarding citizenship, residence or 
employment on a permanent basis. In Article 141.6 the Parties have agreed that nothing in the 
Chapter shall prevent a Party from applying measures to regulate the entry of natural persons into, 
or their temporary stay in, its territory, including measures necessary to protect the integrity of, and 
to ensure the orderly movement of natural persons acro ss its borders, provided that such measures 
are not applied in such a manner as to nullify or impair the benefits accruing to any Party under the 
terms of a specific commitment in this Chapter and the Annexes to the Agreement.  
3.4.  The definitions used in the C hapter are set out in Article 142. Article 143 provides that the 
section applies to measures adopted or maintained by the Parties affecting establishment in all 
economic activities with the exception of: (a) mining, manufacturing and processing of nuclear 
materials; (b) production of and trade in arms, munitions and war material; (c) audio -visual 
services; (d) national maritime cabotage, and (e) domestic and international air transport services, 
whether scheduled or non -scheduled, and services directly rela ted to the exercise  of traffic rights, 
other than: (i) aircraft repair and maintenance services during which an aircraft is withdrawn from 
service; (ii) the selling and marketing of air transport services; (iii) computer reservation system 
('CRS') services ; (iv) ground handling services; and (v) airport operation services.  
3.5.  Article 148 (on cross border supply of services) provides that the Section applies to measures 
of the Parties affecting the cross border supply of services for all services sectors with the exception 
of audio -visual services; national maritime cabotage; and domestic and international air transport 
services, (whether scheduled or non -scheduled) and services directly related to the exercise  of traffic 
rights.4  
Denial  of Benefits  
3.6.  While ther e are no denial of benefits provisions per se,  Article 142(f) provides that 
notwithstanding the preceding paragraphs5, shipping companies established outside the European 
Union or the Republic of Armenia and controlled by nationals of the Member States or of the Republic 
of Armenia, respectively, shall also be beneficiaries of the provisions of this Agreement, if their 
vessels are registered in accordance with their respective legislation, in a Member State or in the 
Republic of Armenia and fly the flag of that Member State or of the Republic of Armenia.  
General provisions on trade in services  
3.3.1   Market access  
3.7.  Article 149.1 provides that with respect to market access through the cross -border supply of 
services, each Party shall accord services and service suppliers of the other Party treatment not less 
favourable than that provided for in the specific commitment s contained in Annexes VIII -B and VIII -
F (EU and Armenia respectively). For service sectors in respect of which market access commitments 
have been scheduled, each Party shall not adopt or maintain, either on the basis of a regional 
subdivision or on the b asis of its entire territory, unless otherwise  specified in Annexes VIII -B and 
VIII-F, limitations on the number of services suppliers, whether in the form of numerical quotas, 
monopolies, exclusive service suppliers or the requirements of an economic need s test; limitations 
on the total value of service transactions or assets in the form of numerical quotas or the requirement 
of an economic needs test; or limitations on the total number of service operations or on the total 
 
4 Other than: (i) aircraft repair and maintenance services during which an aircraft is withdrawn from 
service; (ii) the selling and marketing of air transport services; (iii) computer reservation system ('CRS') 
service s; (iv) ground handling services; and (v) airport operation services (Article 148).  
5 On definitions of "juridical person" and "juridical persons of a Party".  WT/REG 405/1 
 
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  quantity of service output expre ssed in terms of designated numerical units in the form of quotas or 
the requirement of an economic needs test (Article 149.2).  
3.3.2   National and MFN treatment  
3.8.  On national and MFN treatment for establishment, Article 144.1 provides that subject to 
reservations listed in Annex VIII -E, Armenia shall grant, upon entry into force of the Agreement : (a) 
as regards the establishment of subsidiaries, branches and representative offices by natural or 
juridical persons of the EU, treatment no less favourable than that acc orded to its own juridical 
persons, branches and representative offices or to any third -country juridical persons, branches and 
representative offices, whichever is the better; and (b) as regards the operation of subsidiaries, 
branches and representative o ffices by natural or juridical persons of the EU in Armenia, once 
established, treatment no less favourable than that accorded to its own juridical persons, branches 
and representative offices or to any juridical persons, branches and representative office s of any 
third-country juridical persons, whichever is the better.  
3.9.  Article 144.2 provides that subject to reservations listed in Annex VIII -A, the EU shall grant, 
upon entry into force of the Agreement; (a) as regards the establishment of subsidiaries, bra nches 
and representative offices by natural or juridical persons of Armenia, treatment no less favourable 
than that accorded by the EU to its own juridical persons, branches and representative offices or to 
any third -country juridical persons, branches and  representative offices, whichever is the better; 
and (b) as regards the operation of subsidiaries, branches and representative offices by natural or 
juridical persons of Armenia in the EU, once established, treatment no less favourable than that 
accorded to their own juridical persons, branches and representative offices; or to any juridical 
persons, branches and representative offices of any third -country juridical persons, whichever is the 
better.  
3.10.   The Parties have agreed that subject to reservations list ed in Annexes VIII -A and VIII -E, they 
shall not adopt any new measures which introduce discrimination as regards the establishment on 
their territory of juridical persons of the other Party or in respect of the operation of such juridical 
persons, once est ablished, in comparison with their own juridical persons (Article 144.3).  
3.11.   In Article 150 (on national treatment) the Parties have agreed that for committed sectors 
inscribed in Annexes VIII -B and VIII -F, and subject to any conditions and qualifications se t out 
therein, each Party shall grant to services and service suppliers of the other Party, treatment no less 
favourable than that it accorded to its own like services and service suppliers. Article 150.2 provides 
that a Party may meet the requirement of p aragraph 1 by according to services and service suppliers 
of the other Party treatment that is either formally identical or formally different from that accorded 
to its own like services and service suppliers. Formally identical or formally different treat ment shall 
be considered to be less favourable if it modifies the conditions of competition in favour of services 
or service suppliers of the Party compared to like services or service suppliers of the other Party 
(Article 150.3). Article 150.4 notes that specific commitments assumed under the Article shall not 
be construed as requiring any Party to compensate for inherent competitive disadvantages which 
result from the foreign character of the relevant services or service suppliers.  
3.3.3   Commercial presence  
3.12.   As noted above Section B of Chapter 5 of the Agreement governs establishment, and 
Article  144 (on national and MFN  treatment for establishment) provides general obligations that are 
subject to reservations listed in Annex VIII -E for Armenia and the EU.  
3.13.   Article 147 concerns the standard of tr eatment for branches and representative offices. 
Article  147.1 provides that Article 144 does not preclude a Party from applying particular measures 
concerning the establishment and operation in its territory of branches a nd representative offices of 
juridical persons of the other Party not incorporated in the territory of the former Party if those 
measures are justified by legal or technical differences between such branches and representative 
offices as compared to branch es and representative offices of juridical persons incorporated in the 
territory of the former Party or, as regards financial services, for prudential reasons (Article 147.1). 
Article 147.2 provides that the difference in treatment shall not go beyond what  is strictly necessary 
as a result of such legal or technical differences or, as regards financial services, for prudential 
reasons.  WT/REG 405/1 
 
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  3.14.   In Article 146 the Parties have agreed that nothing in the Chapter shall limit the rights of 
investors of the Parties to be nefit from more favourable treatment set out in any existing or future 
international agreement relating to investment to which an EU Member State and Armenia are 
parties.  
3.15.   In Section H on Investment the Parties shall jointly review the environment and lega l 
framework for investment, no later than three years after the entry into force of the Agreement and 
at regular intervals thereafter. On the basis of that review the y shall consider the opportunity for 
starting negotiations on supplementing the Agreement with provisions on investment  (Article 203) .  
3.3.4   Movement of natural persons  
3.16.   Article 153 (on temporary entry of natural persons for business purposes) sets out definitions 
of terms used in section C of Chapter 5, i.e. key personnel, business visitors for esta blishment 
purposes, intra -corporate transferees managers, specialists, graduate trainees, business sellers, 
contractual service suppliers, independent professionals and qualifications.  
3.17.   Under the Agreement, the Parties affirm their respective obligations in their commitments 
under the WTO GATS in relation to the entry and temporary stay of contractual service suppliers 
(Article 156.1).  
3.18.   Annex VIII -C sets out the EUs' reservations on key per sonnel, graduate trainees and business 
sellers of Armenia. The reservations list the economic activities liberalized pursuant to Article 151 of 
the Agreement for which limitations apply on key personnel and graduate trainees in accordance 
with Article 154 of the Agreement and on business sellers in accordance with Article 155 of the 
Agreement and specifies such limitations. Paragraph 10 of Annex VIII -D provides that the EU shall, 
per Article 156 of the Agreement, allow contractual service suppliers of Armen ia through the 
presence of natural persons and lists the covered professional services sub -sectors. Paragraph 11 
does the same in respect of Article 157 of the Agreement for independent professionals and sets out 
additional Member State level reservations.  Annex VIII -D lists the reservations of the EU on 
contractual service suppliers and independent professionals from Armenia.  
3.19.   Annex VIII -G contains Armenia's reservations on contractual service suppliers and 
independent professionals. Paragraph 1 provides t hat Armenia agrees to allow the supply of services 
into its territory by contractual service suppliers and independent professionals of the EU through 
the presence of natural persons. The covered sectors are listed in paragraph 10 of Annex VIII -G.6 
3.20.   Consist ent with its reservations in Annexes VIII -D and VIII -G, each Party shall allow the 
supply of services into its territory by key personnel, contractual services suppliers , independent 
professionals and business sellers of the other Party, subject to a numbe r of specific conditions  
(Table 3.1) . 
 
6 (a) legal services (CPC 861); (b) accounting and bookkeeping services (CPC 862); (c) taxation 
services (CPC 863); (d) architectural services (CPC 8671); (e) engineering services (CPC 8672); (f) integrated 
engineering services (CPC 8673); (g) urban planning and landscape architectural services (CPC 8674); (h) 
medical and dental services (CPC 9312); (i) veterinary services (CPC 932); (j) consultancy services related to 
the installation of computer hardware (CPC 841); (k) software implementation services (CPC 842); (l) data 
processing services (CPC 843); (m) data base services (CPC 844); (n) maintenanc e and repair services of 
office machinery and equipment including computers (CPC 845); (o) other computer services, including data 
preparation services (CPC 849); (p) R&D services (CPC 851 -853); (q) real estate services: involving own or 
leased property (C PC 821); (r) real estate services: on a fee or contract basis (CPC 822); (s) rental/leasing 
services without operators: relating to aircraft (CPC 83104); (t) rental/leasing services without operators: 
relating to other transport equipment (CPC 83101, 83102 ); (u) rental/leasing services without operators: 
relating to other machinery and equipment (CPC 83106 -83109); (v) advertising services (CPC 871); (w) 
market research and public opinion polling services (CPC 864); (x) management consulting service (CPC 865 ); 
(y) services related to management consulting (CPC 866); (z) technical testing and analysis services (CPC 
8676); (aa) consulting services incidental to manufacturing (CPC 884, 885); (bb) maintenance and repair of 
equipment (not including maritime vessel s, aircraft or other transport equipment) (CPC 633, 8861 -8866); (cc) 
printing, publishing (CPC 88442); (dd) convention services (CPC 87909); and (ee) translation and 
interpretation services (CPC 87905).  WT/REG 405/1 
 
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  Table 3.1: Entry by a uthorized business persons under the Agreement  
Authorized categories and scope of application  Length of stay that is allowed by 
the Parties  
Key personnel   
Key personnel comprise business visitors and intra -corporate 
transferees (managers and specialists). Business visitors are 
responsible for setting up a commercial presence.  Maximum 90 days per year.  
Graduate trainees   
Graduates employed in a company of  a Party who are 
temporary transferred to an establishment in the other party 
for training or career development purposes.  Maximum 90 days per year.  
Business services sellers   
Representatives of a company of one Party who seek  to 
negotiate on behalf of its company the sale of a service in the 
other party  requiring the presence on a temporary basis of its 
employees  in that Party, in order to fulfil the contract to 
provide service s Maximum 90 days per year  
Contractual services suppliera  
Natural persons employed by a  juridical person of a  Party which 
has concluded a contract  not exceeding 12 months  to supply 
services with a  final consumer in the other Party, requiring the 
presenc e on a  temporary basis of its employees in that Party, in 
order to fulfil the contract to provide services.  Cumulative period of maximum six 
months and in the case of Luxembourg 
for a period 25 weeks or the duration of 
the contract which cannot exceed one 
year, whichever is less.  
Independent professionalsb  
Natural persons of a Party engaged in the supply of a  service and 
established as self -employed in the territory of a  Party who have 
no establishment in the territory of the other Party and who have 
concluded a  bona fide  contract not exceeding 12 months (other 
than through an agency for placement and supply services of 
personnel) to supply services with a  final consumer in the latter 
Party, requiring their presence on a  temporary basis in that Party 
in order to fulfil the contract to provide services  Cumulat ive period of maximum six 
months and in the case of Luxembourg 
for a period 25 weeks or the duration of 
the contract which cannot exceed one 
year, whichever is less.  
a Additional conditions are that the natural persons : (a) offer that service as employees  of the juridical 
person supplying the services for at least the year immediately preceding the date of submission of an application 
for entry into the other Party, and, also possess, at the date of submission of an application for entry into the 
other Par ty, at least three years of professional experience in the sector which is the subject of the contract; ( b) 
possess a university degree or a qualification demonstrating knowledge of an equivalent level and the 
professional qualifications required to exerci se an activity pursuant to the laws and regulations or other measures 
of the Party where the service is supplied; ( c) must not receive remuneration for the provision of services in the 
territory of the other Party other than the remuneration paid by the ju ridical person employing the natural 
person; ( d) access accorded under Article 156 relates only to the service activity which is the subject of the 
contract and does not confer any independent entitlement to exercise the professional title of the Party whe re 
the service is provided; and ( f) the number of persons covered by the service contract is not larger than necessary 
to fulfil the contract, in accordance with the laws and regulations or other measures of the Party where the 
service is supplied.  
b Additional conditions are that the natural persons: (a) possess, at the date of submission of an 
application for entry into the other Party, at least six years of professional experience in the sector of activity 
which is the subject of the contract; ( b) posses s (i) a university degree or a qualification demonstrating 
knowledge of an equivalent level; and (ii) the professional qualifications required to exercise an activity pursuant 
to the laws and regulations or other measures of the Party where the service is supplied; and ( c) access accorded 
only to the service activity which is the subject of the contract and does not confer entitlement to exercise the 
professional title of the Party where the service is provided.  
Source:  The Agreement.  
 
3.21.   Under its GATS  commit ments7, Armenia has undertaken horizontal commitments on mode 4 
which are unbound with the exception of  4 categories of natural persons , intra corporate transferees, 
persons responsible for setting up a business, and contractual service suppliers and selle rs. Intra 
corporate transferees occupying managerial, executive, technical or specialist positions in 
enterprises established within Armenia were granted entry for an initial period of 3 years , renewable 
for successive periods  under the GATS, whereas under the Agreement the maximum stay has been  
reduced to 90 days.   
 
7 Source: GATS/SC/137.  WT/REG 405/1 
 
- 14 - 
 
  3.22.   Individual service suppliers were granted entry for an initial period of up to 3 years, renewable 
for successive periods  under the GATS, whereas under the Agreement  this was reduced 6 months 
(25 weeks in the case of Luxembourg) .  
3.23.   Persons responsible for setting up of a commercial presence were granted entry for a period 
of up to 3 months  under the GATS , which is the same as under the Agreement.  
3.24.   Contractual service s uppliers are granted a 3 month stay (renewable) under Armenia's GATS 
commitments, which has been improved under the Agreement to a 6 month stay (25 weeks in the 
case of Luxembourg).  
3.25.   Under the GATS, the EU took horizontal commitments on the movement of natural persons. 
Intra-corporate transferees  are subject to a range of maximum stay periods.  It appears that under 
the Agreement the maximum stay granted to intra corporate transferees i s reduced.8 For business 
visitors, under the GATS , the EU undertook commitments on service sellers, persons establishing 
commercial presence and contractual service suppliers. Under those commitments, business sellers 
(service sellers and persons establish ing commercial presence) c an stay for a maximum period of 
90 days in one year, which is the same as  the EU's commitments under the Agreement. Under the 
EU's GATS commitments, contractual service suppliers are permitted to enter and remain in the 
territory of a Member State for a period of not more than 3 months in any 12 months period.9 In 
comparison , under the Agreement this has been improved, with Armenian contractual service 
suppliers now able to remain in an EU Member State for 6 months.  
3.4  Liberalization Commitments  
3.4.1   The European Union  
3.4.1.1   MFN and horizontal commitments  
3.26.   Under the GATS, the EU has scheduled extensive commitments in 11 sectors10, subject, in 
certain cases, to limitations by all or some individual EU Member States. Under the GATS t he EU did 
not make commitments, inter alia , for certain professional services related to medical and 
paramedical sub -sectors, postal and aud io-visual services, some recreational and cultural and 
sporting services and some activities in transport services.  
3.27.   Under the Agreement, all sectors that are the subject of liberalization are listed through the 
use of a negative list approach  for establish ment (Mode 3) and the use of a positive list for cross -
border supply of services  (Mode 1 and 2) . The EU's mode 1 and 2 commitments are set out in Annex 
VIII-B (Article 151.1) . Its reservations on establishment (mode 3) arise from Article 144.2, read in 
conjunction with the horizontal and specific limitations contained in Annex VIII -A (expressed at both 
the EU and Member State level s).  
3.28.   Annex VIII -B sets out  the commitments of the EU in relation to cross border supply. The 
commitments listed therein apply to modes of supply 1 and 2.  
3.29.   Paragraph 1 of Annex VIII -A notes that the EU applies reservations to national or MFN 
treatment pursuant to Article 144 paragrap h 2 of the Agreement to establishments and 
entrepreneurs of Armenia. The EU's reservations are composed of the following elements:(a) 
horizontal reservations applying to all sectors or sub -sectors; and (b) sector - or sub -sector -specific 
reservations indica ting the sector or sub -sector concerned along with the reservations applying.  
3.30.   Reservations corresponding to an activity which is not liberali zed (unbound) are expressed as 
follows: 'No national treatment and most favoured nation treatment obligations'. Whe n a reservation 
 
8 Under the GATS the maximum p ossible stay for natural persons in the ICT category ranges from 5 
years for two EU Member States (EE, LV) down to one year, extendable (PL and SI). Under the Agreement the 
maximum stay is 90 days, representing a reduction in the permitted maximum stay.  
9 24 month period for NL, 90 days in any six month period for EE, six months in any 12 months period 
for computer and related services for SE.  
10 Business Services, communication Services, construction and related services, distribution services, 
education se rvices, environmental services, financial services, health related and social services, tourism and 
travel related services, recreational and cultural and sporting services, transport services.  WT/REG 405/1 
 
- 15 - 
 
  under all sectors or sub -sectors or sector or sub -sector specific only includes Member State -specific 
reservations, Member States not mentioned undertake all the obligations of Article 144 paragraph 2 
of the Agreement in the sector concerne d, without reservations. The absence of Member State -
specific reservations in a given sector is without prejudice to horizontal reservations or to sectoral 
EU-wide reservations that may apply.  Accordingly, it appears that the effect of these provisions is 
that the Agreement contains additional liberalization in comparison to the EU's commitments under 
the GATS.  
3.31.   Annex VIII -A lists the EU's horizontal reservations in relation to establishment and 
entrepreneurs of Armenia  for a range of sectors and sub -sector s. As under the GATS, t he EU has 
listed reservations on public utilities11 (at the EU and certain Member States level), types of 
establishment (EU and Member States), investment, (certain Member States), real estate  ownership  
(certain Member States), and recognition of qualifications and diplomas (the EU).  
3.32.   Annex VIII-A also lists sectoral reservations ( for certain Member States), reflecting a 
substantial improvement compared to the positive commitments taken  under the GATS . This is also 
reflected in the tab le below (Table 3.2)  
3.33.   As under the EU's GATS commitments , the EU takes no commitments for audio -visual 
services , as these are carved -out from the liberalization commitments  (Article 151.2)  of the 
Agreement.  
3.34.   As noted above, Annex VIII to the Agreement contains both the lists of committed sectors on 
services by the Parties12 as well as reservations in respect of establishment13, key personnel and 
graduate trainees and business sellers,14 and on contractual services suppliers and independent 
profes sionals.15  
Table 3.2 EU: comparison between GATS and Agreement specific commitments  and 
reservations  
Sectors / Sub -sectors  GATS  Agreement 
Compared 
to GATS  Commit ments  under the 
Agreement  
Mode 1 and 2 
Commit ments  
(VIII -B) Mode 3  
Commi tments 
(Annex VIII -A) 
1. Business services  Partial  Improved  Partial  Partial  
A. Professional  Services  Partial  Improved  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  
D. Real  Estate  Services  Partial  Improved  Partial  Partial  
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  
2. Communication services  Partial  Improved  Partial  Partial  
A. Postal  services  --- New Full Full 
B. Courier  services  Partial  Improved  Full Full 
C. Telecommunication  services  Partial  Improved  Full Full 
D. Audiovisual services  --- --- --- --- 
E. Other  --- --- --- --- 
3. Construction and related 
engineering services  Partial  Improved  Partial  Partial  
A. General  construction  work for buildings  Partial  Improved  Full Full 
 
11 On public utilities, a reservation at EU level only provide s that economic activities considered as public 
utilities at a national level or local level may be subject to public monopolies or exclusive rights given to private 
operators.  
12 Annex VIII -B sets out committed sectors (and any applicable reservations) at mode 1 and 2 level. 
Annex VIII -A covers commitments on mode 3.  
13 Article 144.1 notes that Armenia's reservations on national treatment and MFN in respect of 
establishment are contained in Annex VIII -E. The EU's reservations on national treatment and MFN i n respect 
of establishment are contained in Annex VIII -A.  
14 Annex VIII -C contains the EU's reservations in respect of key personnel and graduate trainees and 
business sellers (Articles 154 and 155).   
15 Annex VIII -D contains the EU's rese rvations on contr actual service suppliers and independent 
professionals (Articles 156 and 157).  WT/REG 405/1 
 
- 16 - 
 
  Sectors / Sub -sectors  GATS  Agreement 
Compared 
to GATS  Commit ments  under the 
Agreement  
Mode 1 and 2 
Commit ments  
(VIII -B) Mode 3  
Commi tments 
(Annex VIII -A) 
B. General  construction  work for civil  
Engineering  Partial  Improved  Full Full 
C. Installation  and assembly  work  Partial  Improved  Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Full 
E. Other  Partial  Improved  Full Full 
4. Distribution services  Partial  improved  Partial  Partial  
A. Commission  agents'  services  Partial  Improved  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  
D. Franchising  Partial  Improved  Partial  Full 
E. Other   
Improved  --- Full 
5. Education services  Partial  Partial    
A. Primary education services  Partial  Similar  Partial  Partial  
B. Secondary education services  Partial  Similar  Partial  Partial  
C. Higher education services  Partial  Similar  Partial  Partial  
D. Adult education  Partial  Similar  Partial  Partial  
E. Other education services  Partial  Similar  ---  Partial  
6. Environmental services  Partial  Partial  Partial  Partial  
A. Sewage services  Partial  Improved  Partial  Partial  
B. Refuse disposal services  Partial  Improved  Partial  Partial  
C. Sanitation and similar services  Partial  Improved  Partial  Partial  
D. Remediation  Partial  Improved  Partial  Partial  
E. Noise  and Vibration  --- Improved  Partial  Partial  
F. Protection of biodiversity  --- Improved  Partial  Partial  
G. Other  Partial  Improved  Partial  Partial  
7. Financial services  Partial  Similar  Partial  Partial  
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  
C. Other  --- Improved  --- Partial  
8. Health related and social services  Partial  Improved  Partial  Partial  
A. Hospital services  Partial  Similar  Partial  Partial  
B. Other Human Health Services  Partial  Similar  Partial  Partial  
C. Social Services  Partial  Similar  Partial  Partial  
D. Other  Partial  Improved  --- Partial  
9. Tourism and travel related services  Partial  Improved  Partial  Partial  
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Partial  Partial  
B. Travel  agencies  and tour operators   
Services  Partial  Improved  Partial  Partial  
C. Tourist  guides  services  Partial  Improved  Partial  Partial  
D. Other  Partial  Improved  --- Full 
10. Recreational and cultural and 
sporting services  Partial  Partial  Partial  Partial  
A. Entertainment  services  Partial  Improved  Partial  Partial  
B. News agency services  Partial  Improved  Full Partial  
C. Libraries, archives, museums and other 
cultural services  Partial  Improved  Full Partial  
D. Sporting and other recreational 
services  Partial  Improved  Full Partial  
E. Other  --- New Partial  l Full 
11. Transport services  Partial  Improved  Partial  Partial  
A. Maritime Transport Services  Partial  Improved  Partial Partial  
B. Internal Waterways Transport  Partial  Similar  Partial  Partial  
C. Air  Transport  Services  Partial  Improved  Partial  Partial  
D. Space  Transport  --- --- ---  
E. Rail  Transport  Services  Partial  Improved  Partial  Partial  
F. Road Transport  Services  Partial  Improved  Partial  Partial  
G. Pipeline  Transport  Partial  Improved  Partial  Partial  
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Partial  Partial  
12. Other services not included 
elsewhere  Partial  Improved  Partial  Partial  WT/REG 405/1 
 
- 17 - 
 
  Sectors / Sub -sectors  GATS  Agreement 
Compared 
to GATS  Commit ments  under the 
Agreement  
Mode 1 and 2 
Commit ments  
(VIII -B) Mode 3  
Commi tments 
(Annex VIII -A) 
13. Other  Transport  Services  Partial  Improved  Partial  Partial  
14. Energy Services  --- Improved  Partial  Partial  
General Note:   MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
Partial:  Specific commitments subje ct to some limitation(s) under market access or national treatment, 
under any of the three modes.  
---: No specific commitment (under GATS), or full reservation (under the Agreement).  
New: New commitments (full or partial, with or without limitations) which  can, in most but not all cases, 
be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Similar:  Similar commitments; though possibly, in individual cases, with limited improvements and/or l imited 
additional reservations.  
Source:  Consolidated GATS Schedule of Specific Commitments ( GATS/SC/157 ), Annex es VIII-A and B to the 
Agreement.  
3.35.   For most sectors, by virtue of paragraph 1(b) to Annex VIII -B, the EU appears to have granted 
improved market access and national treatment in respect to modes 1 and 2. Paragraph 1(b) 
provides that if a Member state has not inscribed reservations (for a secto r listed in the first column 
of the Annex in the second column of the Annex) that Member State is considered to have 
undertaken commitments in the sector without any reservations for modes 1 and 2.  
3.4.1.2   Business services  
3.36.   For professional services, the EU has expanded the scope for its legal services commitments, 
and has fewer limitations for example for architectural and engineering services. For rental/leasing 
services market access is improved in comparison to the GATS, as the EU has enlarged the coverage 
of the sector, adding a new subsector on telecommunications equipment rental (CPC 7541). 
According to the Parties, f or other business sectors, in advertising  services  the EU has removed the 
GATS sectoral definition exclu sions for certain Member States on advertising activities, and extended 
it to a full EU commitment by removing limitations for the remaining Member States.  
3.37.   All Member States also have no mode 1 and 2 reservations  for research and opinion polling, 
manageme nt consulting services, and services related to management consulting, removing the 
restrictions in respect of several concerned Member States under the EU's GATS commitments, 
representing improvements. The subsectors services incidental to mining and serv ices incidental to 
energy distribution under the GATS have been moved to energy services and is committed for all 
Member States, implying an improvement in comparison to the GATS .  
3.38.   Improvements are also registered in relation to the scope of security servi ces, with the 
sub-sector scope limitations in respect of 4 Member States being removed. Compared to the EU's 
GATS commitments, newly committed or improved sub-sectors relate  to scientific and technical 
consulting services (CPC 8675) and several new sub -sectors under maintenance and repair and 
telecommunications consulting and telephone answering services have been added.  The new  sub 
sectors do not have full commit ments  as they include some mode 1 reservations by the EU and 
Member states and no limitations f or mode 2.  Mode 3, listed in Annex VIII -A, is generally improved 
for business services in comparison to the GATS.  
3.4.1.3   Communication services  
3.39.   Under communication services the EU has added a full commitment on postal services, 
compared to its GATS commitments (limited to courier services) , expanding the commitment with 
additional liberalisation . On telecommunication services, the subsector satellite broadcast services WT/REG 405/1 
 
- 18 - 
 
  have been added , expanding the committed sub -sectors. The sole reservations are at  the EU level16 
and one Member State (Belgium) has left the sector unbound for modes 1 and 2  for satellite 
broadcasting services .  
3.4.1.4   Construction and related engineering services  
3.40.   For 3. Construction and related engineering services, the EU has improved its co mmitments, 
by harmonizing the scope of commitments, and removing GATS limitations in respect of many 
Member States and now only "unbound" under mode 1 for a single Member State, and establishment 
for another, representing additional liberali zation.  
3.4.1.5   Distri bution services  
3.41.   On Distribution Services, the EU has expanded the scope of the commission agents services 
subsector's CPC classifications  (under the GATS all Member states except Sweden, the CPC sectors 
covered were 621 (for Sweden 621 and 6113). Under the  Agreement commission agents services 
are expanded to include motor vehicles, motorcycles and snowmobiles and parts and accessories 
thereof as well as retaining the previous other commission agents services , representing an 
improvement. A few products such  as pharmaceuticals, tobacco and alcohol have reservations in 
individual Member States.  
3.4.1.6   Education services  
3.42.   The EU has listed an EU wide mode 1 and 2 restriction and no restrictions on mode 3 for other 
education services, thus representing an improvement co mpared to its GATS commitments where 
the subsector was "unbound" for Member States (except two). Mode 3 reservations are listed in 
Annex VIII -A, thus representing an improvement in comparison to the GATS.  
3.4.1.7   Environmental services  
3.43.   In comparison to its GATS c ommitments, the EU has improved its mode 1 and 2 access to 
Sewage services, with an EU level reservation on mode 1 and "none" for mode 2. The EU has newly 
committed three new sub -sectors in Environmental Services, remediation and clean -up of soil and 
water s, noise and vibration abatement, and protection of biodiversity and landscape, all with an EU 
reservation on mode 1 ("unbound except for consulting services) and "none" for mode  2. Only one 
Member state has listed a reservation for mode 3 for environmenta l services, representing an 
improvement in comparison to the GATS.  
3.4.1.8   Financial services  
3.44.   According to the Parties, for financial services, the EU's commitments under the Agreement 
have been improved compared to its commitments under the GATS, by harmonising and cleaning 
outdated reservations so  fewer reservations are listed . Similarly, Annex VIII -A lists multiple mode 3 
reservations for Member States , reflecting a level of commitment as in the GATS.  
3.45.   The EU has liste d Member State reservations in relation to insurance and insurance -related 
services, which are unbound for direct insurance activities except for insurance of risk relating to 
(i) maritime shipping and commercial aviation and space launching and freight, ( ii) goods in 
international transit, at both mode 1 and 2 and mode 1 level. The EU also lists as unbound direct 
insurance intermediation services for mode 1 except for maritime shipping and commercial aviation 
and space launching and freight, goods in inter national transit.  
3.46.   On banking and other financial services (excluding insurance) the EU's commitments appear 
to duplicate those under the GATS at the mode 1 and 2 level, although several mode 1 "unbound" 
commitments listed in the EU's GATS commitments for certain Member States (such as trading of 
 
16 Service providers in this sector may be subject to obligations to safeguard general interest objectives 
related to the conveyance of content through their network in line wit h the EU regulatory framework for 
electronic communications.  WT/REG 405/1 
 
- 19 - 
 
  transferable securities, asset management)  are now integrated in the EU -wide commitments, and 
do not appear and thus represent a liberalization under the Agreement.  
3.4.1.9   Health related and social services  
3.47.   On health rel ated and social services, for hospital services, ambulance services, and 
residential health facilities other than hospital services . The sector is partially committed under the 
GATS. Under the Agreement, the EU maintains a broad reservation to adopt or mai ntain any measure 
with respect to social services established or maintained for public purposes. The EU Schedule 
clarifies that only commitments made with respect to privately funded health services may be 
covered under the Agreement. It also clarifies tha t the EU reserves the right to adopt or maintain 
any measure with regard to the supply of all health services which receive public funding or State 
support in any form, and are therefore not considered to be privately funded. It also reserves the 
right to adopt or maintain any measure regarding human health services. Among the measures that 
remain applicable in some EU Member States, are certain nationality or residence requirements for 
providing certai n health and social services. There are no commitments in the . other sub-sectors  
like in the EU's GATS commitments. Multiple mode 3 reservations are listed in Annex VIII -E for the 
sector.  
3.4.1.10   Tourism and Travel related services  
3.48.   In respect of hotels, restaurants and catering, travel agencies and tour operators serv ices, 
and t ourist guides services, no Member State lists a reservation on mode 2, an improvement in 
comparison to the EU's commitments under the GATS. For mode 1 fewer reservations are listed 
although more Member States list their reservations as  "unbound" . On mode 2, like under the GATS, 
the EU has listed reservations as "none", representing an improvement. The subsector other is not 
included in the commitments under the Agreement, whereas it is included in the EU's GATS 
commitments. Mode 3 reservations by  Member States, including nationality requirements  in a few 
Member States , are set out in Annex VIII -A and represents an improvement over GATS . 
3.4.1.11   Recreational, cultural and sporting services (other than audio -visual services)  
3.49.   Entertainment services is not su bject to limitations on the scope of the sector and is unbound 
for all but 2  Member States at the mode 1 level, as under the EU's GATS commitments. Mode 2 
commitments in the subsector repeat  "unbound" reservations for 11 Member States, although in 
view of the scope of the sector the commitments are improved overall. On news and press agencies 
services, and libraries, archives museums and other cultural services, reservations on modes 1 and 
2 are the same as under the GATS. For  sporting services, the scope o f the subsector has been 
expanded due to the elimination of limitations in the GATS market access column. A newly committed 
sub-sector, recreation park and beach services appears under the Agreement. Annex VIII -A lists 
reservations by several Member States in relation to mode  3, with an EU reservation for any sector 
not specifically committed in Annex VIII -B on cross border trade . 
3.4.1.12   Transport services  
3.50.   Commitments on  maritime transport  and inland waterways transport exclude national 
cabotage, both in terms of the described scope of the sub -sectors and reservations listed in the 
second column. The commitments improve  GATS  commitments for cross -border international 
maritime transport, including feedering services . Commi tments on the subsector s for air transport 
in the Agreement  mirrors commitments in GATS and add the sub -sectors of ground -handling . On 
rail, and road transport, an EU wide "unbound" reservation appears for mode 1, and "none" for 
mode  2, representing an imp rovement. On pipeline transport, under the GATS the EU has listed 
"unbound" for mode  1 and mode 2 is unbound for all Member States except Hungary and Lithuania. 
Under the Agreement the subsector is committed as "unbound " for all EU , and split into pipeline  
transport for fuel, under energy, and transport of other goods . Under Annex VIII -A, the EU, and its 
Member States have listed multiple reservations across all sub -sectors.  
3.4.1.13   Services auxiliary to all modes of transport  
3.51.   The EU's commitments on services auxi liary to transport under the Agreement are broader 
than its GATS commitments, covering 6 broad sub -sectors in comparison to 3 under the GATS, WT/REG 405/1 
 
- 20 - 
 
  although the EU wide and Member State mode s 1 and 2 reservations under the Agreement are 
broadly similar in depth to those under the GATS. Under Annex VIII -A, the EU  has committed 
extensively , while Member States have listed specific  reservations for some of  the sub-sectors , as 
under the GATS . 
3.4.1.14   Other transport services  
3.52.   Compared to the GATS, other transport services is now scheduled as a separate sector (under 
the GATS other transport services was a subsector of transport services ). Under the GATS the sector 
was unbound. Under the Agreement the EU has improved its mode 1 "unbound"  under  the GATS, 
with only an EU wide reservation relating to initial and final road haulage legs of a combined transport 
operation  limiting full opening of the sub -sector . The mode 2 reservations under the Agreement are 
the same as under the GATS. Under Annex VIII -A, the EU,  and Member States have listed multiple 
reservations across all sub -sectors.  
3.4.1.15   Energy services  
3.53.   Under the Agreement , a new separate sector, energy services , has been added with sub -
sectors services incidental to mining, pipeline transportation of fuels, storage and warehouse 
services of fuels transport, wholesale trade services of solid, liquid and gaseous fuels and related 
products, retailing services of motor fuel, retail sales of fuel oil, bottled gas, coal and wood and 
retailing services of electricity, (n on-bottled) gas, steam and hot water and services incidental to 
energy distribution, which represents an improvement to the EU's commitments in comparison to 
the GATS. The sector of  pipeline transportation of fuels  is unbound in modes 1 and for mode 2 are 
unbound for all Member States except Croatia, Hungary and Lithuania. As noted above, on pipeline 
transport, under the Agreement the subsector is "unbound " for all EU, and split into pipeline 
transport for fuel, under energy, and transport of other goods. Other sub-sectors17 have unbound 
reservations for different Member states in respect of mode 1  and the EU has also listed reservations 
for modes 1 and 218, overall resulting in a partial commitment.  
3.4.2   Armenia  
3.4.2.1   MFN and horizontal commitments  
3.54.   Armenia has listed horizontal reservations in its GATS commitments on services in relation to 
modes 3 and 4 national treatment (land ownership and subsidies) and mode 4 tempor ary entry of 
intra corporate transferees, individual service suppliers and temporary presence persons setting up 
a commercial presence. Armenia lists no horizontal reservations under Annex VIII -F of the 
Agreement, although it has listed a reciprocity condi tion for MFN, a reservation on public utilities 
and also on ownership of real estate (nationality requirement).  
3.55.   Under the GATS, Armenia has 4 sub -sectors subject to Article II reservations. Those 
reservations are not included in Armenia's commitments unde r the Agreement, representing an 
improvement.  
Table 3.3 Armenia : comparison between GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  Agreement 
Compared to 
GATS  Commit ment s under the 
Agreement  
Mode 1 and 2 
Commit ments  
(VIII -F) Mode 3  
Commitments  
(VIII -E) 
1. Business services  Partial  Similar  Partial  Partial  
A. Professional  Services  Partial  Similar  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
 
17 Storage and warehouse services of fuels transported through pipelines, wholesale trade services of 
solid, liquid and gaseous fuels and related products and wholesale trade services of electrici ty, steam and hot 
water, retail sales of fuel oil, bottled gas, coal and wood and retail sales of electricity, (non -bottled) gas, steam 
and hot water.  
18 Wholesale trade services of solid, liquid and gaseous fuels and related products and wholesale trade 
services of electricity, steam and hot water; retail sales of fuel oil, bottled gas, coal and wood and retail sales 
of electricity, (non -bottled) gas, steam and hot water and services incidental to energy distribution  WT/REG 405/1 
 
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  Sectors / Sub -sectors  GATS  Agreement 
Compared to 
GATS  Commit ment s under the 
Agreement  
Mode 1 and 2 
Commit ments  
(VIII -F) Mode 3  
Commitments  
(VIII -E) 
C. Research  and Development  Services  Full Similar  Full Full 
D. Real Estate  Services  Partial  Similar  Full Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Similar  Partial  Full 
F. Other  Business  Services  Partial  Improved  Full Full 
2. Communication services  Partial  Improved    
A. Postal  services  --- New Full Full 
B. Courier  services  Full Similar  Full Full 
C. Telecommunication  services  Partial  Improved  Full Full 
D. Audiovisual services  Partial  Similar  Partial  Partial  
E. Other  --- --- --- --- 
3. Construction and related 
engineering services  Partial  Improved  Full Full 
A. 
General  construction  work for buildings  Partial  Improved  Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Full Full 
C. Installation  and assembly  work  Partial  Improved  Full Full 
D. 
Building  completion  and finishing  work  Partial  Improved  Full Full 
E. Other  --- --- --- --- 
4. Distribution services  Partial  Improved  Partial  Partial  
A. Commission  agents'  services  Full Improved  Full Full 
B. Wholesale  trade services  Partial  Similar  Partial  Partial  
C. Retailing  services  Full Similar  Full Full 
D. Franchising  Full Similar  Full Full 
E. Other  --- --- --- --- 
5. Education services  Partial  Similar  Partial  Partial  
A. Primary education services  --- --- --- --- 
B. Secondary education services  --- --- --- --- 
C. Higher education services  Full Similar  Full Full 
D. Adult education  Full Similar  Full Full 
E. Other education services  --- --- --- --- 
6. Environmental services  Partial  Improved  Partial  Full 
A. Sewage services  Partial  Improved  Partial  Full 
B. Refuse disposal services  Partial  Improved  Partial  Full 
C. Sanitation and similar services  Partial  Improved  Partial  Full 
D. Other  Partial  Improved  Full Full 
7. Financial services  Partial     
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  
B. Banking  and other  financial  services  Partial  Similar  Partial  Partial  
C. Other  --- --- --- --- 
8. Health related and social 
services  Partial  Similar  Partial  Partial  
A. Hospital services  Partial  Similar  Partial  Partial  
B. Other Human Health Services  Partial  Similar  Partial  Partial  
C. Social Services  --- --- --- --- 
D. Other  --- --- --- --- 
9. Tourism and travel related 
services  Partial     
A. Hotels  and restaurants (including 
catering)  Partial  Similar  Partial  Partial  
B. Travel  agencies  and tour operators   
Services  Full Same Full Full 
C. Tourist  guides  services  Full Similar  Full Full 
D. Other  --- --- --- --- 
10. Recreational and cultural and 
sporting services  Partial     
A. Entertainment  services  Full Similar  Full Full 
B. News agency services  --- Improved  Full Full 
C. Libraries, archives, museums and 
other cultural services  --- --- --- --- WT/REG 405/1 
 
- 22 - 
 
  Sectors / Sub -sectors  GATS  Agreement 
Compared to 
GATS  Commit ment s under the 
Agreement  
Mode 1 and 2 
Commit ments  
(VIII -F) Mode 3  
Commitments  
(VIII -E) 
D. Sporting and other recreational 
services  Full Similar  Full Full 
E. Other  --- --- --- --- 
11. Transport services  Partial  Improved  Partial  Partial  
A. Maritime Transport Services  --- Improved  Full Full 
B. Internal Waterways Transport  --- --- --- --- 
C. Air  Transport  Services  Partial  Improved  Partial  Partial  
D. Space  Transport  --- --- --- --- 
E. Rail  Transport  Services  Partial  Improved  Partial  Partial  
F. Road  Transport  Services  Partial  Same  Partial  Partial  
G. Pipeline  Transport  --- New Partial  Partial  
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Partial  Partial  
I. Other  Transport  Services  --- --- --- --- 
12. Other services not included 
elsewhere  --- --- --- --- 
General Note:   MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
Partial:  Specific commitments subje ct to some limitation(s) under market access or national treatment, 
under any of the three modes.  
---: No specific commitment (under GATS), or full reservation (under the Agreement).  
New: New commitments (full or partial, with or without limitations) which  can, in most but not all cases, 
be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Similar:  Similar commitments; though possibly, in individual cases, with limited improvements and/or l imited 
additional reservations.  
Source:  WT/ACC/ARM/23/Add.2  and Annex VIII -E and F of the Agreement.  
 
3.4.2.2   Business services  
3.56.   Armenia's commitments on all professional services under the Agreement mirror its GATS 
commitments, all sectors have  no reservations for modes 1 and 2, with the sole exception of the 
drafting of legislative documents. The scope of other business services sector is enlarged under the 
Agreement, listing new sub sectors on consulting services modes 1 and 2, representing an 
improvement over its GATS commitments. Annex VIII -E provides that mode 3 is fully open (except 
legislative documents, notarising services and auditing (sole proprietor or partnerships) ).  
3.4.2.3   Communication services  
3.57.   Armenia has added postal services, taking a ful l commitment across modes 1, 2 and 3, 
representing an improvement in comparison to its nil commitment under the GATS. On 
telecommunications, Armenia's conditional market access GATS commitment is unconditional under 
the Agreement, across the 3 modes of sup ply. On audio-visual  services , under the GATS Armenia 
has undertaken broad commitments, with no reservations on market access and national treatment. 
Although audio -visual  services are  excluded from coverage under the Agreement, Armenia has 
undertaken comm itments on some sub -sectors of audio -visual services with no reservations across 
the 3 modes of supply.  
3.4.2.4   Construction services  
3.58.   Armenia has improved upon its GATS commitments in the sector, substituting "none" (under 
the Agreement) for mode 1 "unbound" in i ts GATS commitments, representing an improvement. No 
commitments are made for the  subsector other as in the GATS . All committed sub -sectors have no 
reservations across the 3 modes of supply.  WT/REG 405/1 
 
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  3.4.2.5   Distribution services  
3.59.   Under the Agreement, Armenia's commitments are expanded compared to its GATS 
commitments, with expanded sub -sectors (scope defined by CPC classifications) in wholesale  
services , representing an improvement. No commitments are made in the  subsector other as in the 
GATS . There are no " reservations ac ross the 3 modes of supply  in all sub -sectors in which there are 
commitments . 
3.4.2.6   Educational services  
3.60.   Under the Agreement Armenia has no reservations for modes 1 -3 for sub -sectors on higher 
education and adult education, as under the GATS.  
3.4.2.7   Environmental ser vices  
3.61.   Armenia has added sub -sectors, for example protection of diversity and landscape and other 
environmental and ancillary services, expanding the covered sub -sectors in comparison to its GATS 
commitments. Armenia has retained its "unbound" reservation f or mode 1, although modes 2 and 3 
are without reservations representing an improvement.  
3.4.2.8   Financial services  
3.62.   Like under its GATS commitments, Armenia has retained several "unbound" reservations in 
the sub sectors of insurance and banking, although it has no  reservations under modes 2 and 3 
under the Agreement, representing an improvement in comparison to various mode 3 reservations 
under Armenia's GATS commitments.  
3.4.2.9   Health and social services  
3.63.   Although Armenia's GATS commitments have an "unbound" reservation in relation to mode 1 
for two sub-sectors for which it has commitments , under the Agreement the entire sector is subject 
to a "technically not feasible" reservation. Modes 2 and 3 are not subject to reservations, as under 
Armenia's GATS commitments.  
3.4.2.10   Touri sm and related services  
3.64.   Although Armenia's GATS commitments have an "unbound" reservation in relation to mode 1 
for two sub -sectors for which it has commitments , under the Agreement the sub-sector hotels and 
restaurants is subject to a "technically not fea sible" reservation.  The other covered sub -sectors 
(travel agencies and tourist guide services (the latter with an expanded CPC scope)) are not subject 
to modes 1, 2 and 3 reservations however, representing an improvement.  
3.4.2.11   Recreational and cultural and spor ting services  
3.65.   Under the Agreement, Armenia has added news agency services to the sub -sectors  for which 
it has commitments , representing an improvement. Both under the Agreement and the GATS the 3 
modes of supply have no reservations.  
3.4.2.12   Transport  
3.66.   Under the Agreement Armenia has added maritime transport and expanded commitments in  
air transport and rail transport . For a number  of covered sub -sectors19 mode 1 is "unbound" under 
the Agreement . Apart from those sub-sectors , all others  have "none" in respect of modes 1 and 2 
representing an improvement in comparison to Armenia's GATS commitments. Armenia has also 
added a commitment on pipeline transportation of fuels, although both modes 1 and 3 are "unbound" 
in respect of natural gas pipeline transportation (except for consulting services).  
 
 
19 Ground handling services, airport mana gement, and passenger transportation, freight transportation.  WT/REG 405/1 
 
- 24 - 
 
  3.5  Regulatory Provisions  
3.5.1   Domestic regulation  
3.67.   Title VI, Trade and Trade related matters, Section E, Articles 158 -192 concern the regulatory 
framework. The scope of the section as well as definitions used in the section appear in Article 158.  
3.68.   Article 159 provides that each Party shall ensure that meas ures relating to licensing 
requirements and procedures, as well as qualification requirements and procedures are based on 
criteria which are proportionate to a public -policy objective; are clear and unambiguous, objective, 
pre-established, were made public  in advance; and are transparent and accessible, in order to ensure 
that the competent authorities are precluded from exercising their power of assessment in an 
arbitrary manner  (Article 159.1 and 2) . The Parties have agreed to ensure that an affected 
entrepreneur shall have access to judicial, arbitral or administrative tribunals for review of 
administrative decisions affecting establishment, cross -border supply of services or temporary 
presence of natural persons for business purposes (Article 159.4).  
3.69.   Article 160 sets out requirements for licensing and qualification procedures. The procedures 
must be clear, publicly available in advance, and operate so as to provide applicants with a guarantee 
of objective and fair consideration of their application (Arti cle 160.1). Licensing and qualification 
procedures are required to be simple, and not unduly complicate or delay the provision of the service, 
and any payable fees should be proportionate to the cost of the procedures (Article 160.2).  
3.5.2   Recognition  
3.70.   Article 161 concerns mutual recognition, and provides that nothing in the Chapter shall 
prevent a Party from requiring that natural persons of the other Party possess the required 
qualifications and professional experience where the service is supplied (Article 16 1.1). The Parties 
have agreed to develop recommendations on mutual recognitions of professional qualifications and 
experience by the Partnership Committee, and to review recommendations on the extent to which 
the standards and criteria applied by each Part y for authorisation, licences, operation and 
certification of services providers and entrepreneurs are converging, and the potential economic 
value of an agreement on mutual recognition of qualifications and experience (Article 161.3). 
Article  161.4 provid es once it has considered the matters set out in Article 161.3, the Partnership 
Committee may establish the necessary steps to negotiate an agreement on mutual recognition. 
Any such agreement shall conform with relevant WTO Agreement provisions, in particu lar Article VII 
of the GATS and Annex 1B thereof.  
3.71.   Article 162, on transparency and disclosure of confidential information, provides that each 
Party shall respond promptly to requests from the other Party for specific information on any of its 
measures of general application or international agreements that pertain to or affect the Agreement, 
and shall designate enquiry points within 3 months of entry into force of the Agreement 
(Article  162.1).  According to the Parties, the enquiry points have not yet been  designated but are 
considered the same as the contact point s under section 4.5 below. It was expected this could be 
explicitly clarified at the next meeting of the Partnership Committee in trade configuration .  
3.5.3   Subsidies   
3.72.   Section C of Chapter 10, Articles 290 -296 concerns subsidies relating to both goods and 
services.  
3.5.4   Safeguards  
3.73.   With regard to e lectronic communication network and services , Article 175 (on competitive 
safeguards on major suppliers) provides that each Party shall adopt or maintain measures for the 
purpose of preventing major suppliers, alone or together, from engaging in or continuing anti -
competitive practices. Those anti -competitive practices include: (a) engaging in anti -competitive 
cross-subsidisation; (b ) using information obtained from competitors with anti -competitive results; 
and (c) not making available to other service suppliers on a timely basis technical information about 
essential facilities and commercially relevant information which are necessar y for them to provide 
services.  WT/REG 405/1 
 
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  3.6  Sector -Specific Provisions  
3.6.1    Computer services  
3.74.   Sub-section III  of Chapter 5 , Article 163 sets out a definition of computer services , defined in 
part by CPC code 84 (Article 163.2), and expanded in Article 163.3 with an inclus ive list in 
paragraphs (a) -(d). Article 163.4 provides that computer and related services enable the provision 
of other services, such as banking, and distinguishes between the enabling service, such as web -
hosting or application hosting) and the content o r core service which is supplied electronically, which 
would not be covered by CPC 84.  
3.6.2    Postal Services  
3.75.   Sub-section IV of Chapter 5, Articles 164 -169 concern the principles of the regulatory 
framework for postal services. Each Party shall ensure that a su pplier of postal services subject to a 
universal service20 obligation or a postal monopoly does not engage in market -distortive practices 
such as (a) using revenues from the supply of such service to cross -subsid ize the supply of an 
express delivery service  or any non -universal service, and (b) unjustifiably differentiating among 
customers such as businesses, large -volume mailers or consolidators with respect to tariffs or other 
terms and conditions for the supply of a universal service  (Article 165) . Articl e 166 provides that 
each Party has the right to define the kind of universal service obligation it wishes to maintain. Tariffs 
for the universal service should be affordable to meet the needs of users. Licences should be replaced 
with simple registration, but if required, should be no more burdensome than necessary, the terms 
made publicly available, reasons should be provided if a licence is denied, and each Party should 
create an appeal procedure that is independent, transparent, non -discriminatory and ba sed on 
objective criteria (Article 167). In Article 169 the Parties have recogni zed the importance of gradual 
approximation of the legislation of Armenia on postal services with that of the EU.  
3.6.3   Electronic communication network and services  
3.76.   Sub-section V, Articles 170 -180 of Chapter 5 concerns electronic communication network s 
and services. The scope of and definitions used in the sub -section are set out in Article 170. Article 
171.1 requires that each Party ensure that its regulatory authorities for electr onic communications 
networks and services are legally distinct and functionally independent from other suppliers of 
electronic communications services and electronic communications equipment. In the event that a 
Party that retains ownership or control of p roviders of electronic communications networks or 
services , it shall ensure effective structural separation of the regulatory function from activities 
associated with ownership or control. The regulatory authority is required to act independently and 
not seek or accept instructions from any other body in relation to the exercise  of regulatory tasks 
assigned it by domestic law (Article 171.2). Other obligations of impartiality and independence, 
transparency of administration and functioning, as well as the a vailability of appeals by users or 
suppliers are also set out in Article 171.  
3.77.   Article 172 concerns authorisation for service suppliers  to provide communications networks 
or services. Licensing may be required for the right to use radio networks (Article 1 72.2). Licensing 
administration by the Parties is subject to the requirements of Articles 172.3 and 4.  
3.78.   Access and interconnection is covered by Article 174  which  shall be agreed on a commercial 
basis between suppliers. Suppliers shall have a right to negotiate interconnection (Article 174.2). 
Article 174.4 requires the Parties to ensure that access is granted by a major supplier in its territory 
on a market basis,  on reasonable and non -discriminatory terms. Obligations concerning 
interconnection to public telecommunications services are set out in Article 174.5 (a) -(c).  
3.79.   Article 175 requires each Party to adopt or maintain measures for the prevention of anti -
compet itive behaviour by suppliers, including anti -competitive cross subsidisation, using information 
to an anti -competitive outcome, and not providing to other service suppliers technical information 
about essential facilities and commercially relevant informat ion needed for them to provide services.  
 
20 Defined in Article 164.2(b) as the permanent provision of a minimum set of postal services of 
specified quality at all points in the territory of a Party.  WT/REG 405/1 
 
- 26 - 
 
  3.80.   Obligations on universal service and the scope thereof are set out in Article 176. The 
obligations shall not be regarded as anti -competitive per se, provided they are administered in a 
proportionate, transparent, o bjective and non -discriminatory way (Article 176.1). All suppliers of 
electronic communication services should be eligible to provide universal service, and the 
designation of providers is required to be done through a mechanism that is efficient, transpar ent 
and non -discriminatory (Article 176.3). The regulatory authorities shall also intervene in disputes 
between suppliers of electronic communication networks and services in connection with rights and 
obligations arising from the subsection if requested b y a supplier (Article 179.1). In Article 180 the 
Parties recogn ize the importance of gradual approximation of Armenia's legislation on electronic 
communication networks with that of the EU.  
3.6.4   Financial Services  
3.81.   Sub-section VI, Articles 181 -189 concern s financial services. The scope and definit ions are 
set out in Article 181, mirroring the definitions used in the GATS Annex on Financial Services. Nothing 
in the Agreement shall prevent a Party from adopting or maintaining measures for prudential reasons 
such as protection of investors, depositors, policy -holders or persons to whom a fiduciary is owed or 
ensuring the integrity and stability of its financial system (Article 182.1). The Parties agree to ensure 
effective and transparent regulation, by ensuring tra nsparency in measures of general application 
(Article 183.1), and use their best endeavours to ensure that internationally agreed standards for 
regulation and supervision in the sector and for the fight against tax evasion and avoidance  are 
adhered to . Each Party  will permit a supplier of the other Party to provide any new financial service 
of a type it would permit its own suppliers to provide under its domestic law in like circumstances 
(Article 184).  
3.82.   Specific exemptions from the sector are set out in  Article 186. Nothing in the Chapter shall 
be construed as preventing a Party, including its public entities, from exclusively conducting or 
providing in its territory activities or services forming part of a public retirement plan or statutory 
system of s ocial security, unless such activities or services are permitted to be carried out by financial 
service suppliers in competition with public entities or private institutions (Article 186.1). The 
Agreement does not apply to activities conducted by a central  bank or monetary authority or other 
public entity in pursuit of monetary or exchange rate policies (Article 186.2). Article 186.3 provides 
that the Chapter shall not be construed to prevent a Party, including its public entities from 
exclusively conductin g or providing in its territory activities or services for the account or with the 
guarantee  or using the financial resources of the Party or its public entities. Self -regulatory 
organisations are required to comply with the obligations of MFN and national  treatment.21  
3.83.   In Article 189 the Parties recogn ize the importance of the adequate regulation of financial 
services to ensure financial stability, fair and efficient markets and the protection of investors, 
depositors, policy -holders and persons to whom a f iduciary duty is owed by financial service suppliers 
and agree that Armenia shall approximate , as appropriate,  its financial services regulation to the 
legislation of the EU.  
3.6.5   Transport Services  
3.84.   Sub-section VII, Articles 190 -192 concern s transport services .22 Article 19 1 sets out the 
principles of the subsection as applied to sections B (establishment), C (cross border supply of 
services) and D (temporary presence of natural persons for business purposes) of Chapter 5 of Title 
VI of the Agreement. Article 19 1.3 provides that in view of existing liberali zation o f international 
maritime transport by the Parties, each Party shall (a) apply effectively the principle of unrestricted 
access to the international maritime markets and trades on a commercial and non -discriminatory 
basis and (b) grant to ships flying the flag of the other Party or operated by service suppliers of the 
other Party treatment no less favourable than that accorded to its own ships or those of any third 
country, whichever are the better with r egard to ( inter alia ) access to ports the use of infrastructure 
and services of ports, and the use of maritime auxiliary services as well as related fees and charges, 
customs facilities and the assignment of births and facilities for loading and unloading (Article 191.3). 
Each Party shall permit international maritime transport service suppliers of the other Party to 
 
21 Article 144, National treatment an d MFN in establishment, Article 150, National treatment in cross -
border supply of services subject to commitments.  
22 Annex 1 to Chapter 1 "Transport of Title V: Other Cooperation " on the approximation of EU transport 
policy by Armenia also concerns transport services.  WT/REG 405/1 
 
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  establish in its territory under conditions of establishment and operation no less favourable that 
those accorded to its own service suppliers  or those of a third country, whichever is the better. In 
Article 192 the Parties recogn ize the importance of gradual approximation of the legislation of 
Armenia on transport services to that of the EU.  
4  GENERAL PROVISIONS O F THE AGREEMENT  
4.1  Transparency  
4.1.  Chapter 12  of Title VI (trade and trade -related matters) ,, Articles 307 -315 concern 
transparency. Article 308 notes that the P arties seek to provide a predictable regulatory environment 
and efficient procedures for economic operators, in particular for SMEs. Article 309.1 provides that 
each Party shall (a) ensure that measures of general application adopted after the entry into force 
of the Agreement are promptly and readily available via an officially designated medium, including 
electronic means, in such a manner as to enable any person to become acquainted with them; (b) 
to the extent possible , clearly state the objective of and rationale for the measures; and (c) allow a 
sufficient period of time between publication and entry into force of such measures, e xcept in 
justified cases.  Article 310 (on enquiries and contact points) provides that the Parties shall designate 
a contact point on entry into force of the Agreement, in order to ensure the effective implementation 
of the Agreement and to facilitate commu nication between the m on any matter covered by the 
Agreement. If requested by a Party the contact point of the other Party shall identify the body or 
official responsible for the matter and assist, as necessary, in facilitating communication with the 
reque sting Party. Article 311 concerns administration of measures of general application in a 
uniform, objective, impartial and reasonable manner. According to the Parties, the contact points 
were established during the first meeting of the EU -Armenia Partnersh ip Committee in Trade 
Configuration on 25 September 2018 for the EU and through written exchange thereafter for 
Armenia . 
4.2.  In Article 312.1 the Parties agree to establish or maintain (in accordance with their domestic 
law) judicial, arbitral or administrativ e tribunals or procedures for the prompt review and, where 
warranted, correction of administrative action relating to matters covered by the Agreement. The 
tribunals or procedures shall be impartial and independent of the office or authority entrusted with  
administrative enforcement, and those responsible for them shall not have any substantial interest 
in the outcome of the matter. Procedural rights for parties to proceedings are laid out in 
Article  312.2.  
4.3.  Article 313 concerns good regulatory practice and  administrative behaviour, and the Parties 
agree to cooperate in promoting regulatory quality and performance, including through the exchange 
of information and best practices on their respective regulatory reform processes and regulatory 
impact assessment s. The provisions of the Chapter  will not require any Party to disclose confidential 
information which would impede law enforcement, or otherwise  be contrary to the public interest, 
or which would prejudice the legitimate commercial interests of particular  enterprise s, public or 
private  (Article 314) . 
4.2  Current payments and capital movements  
4.4.  In Chapter 6  of title VI , Article 204 the Parties agree to impose no restrictions on payments 
and transfers on the current account of the balance of payments between the EU and Armenia and 
to allow  them, in freely convertible currency and in accordance with the Articles of Agreement of the 
International Monetary Fund.  
4.5.  Article 205 on capital movements provides that from the date of entry into force of the 
Agreement, the Pa rties will ensure the free movement of capital relating to direct investments made 
in accordance with the law of the host country and the provisions of Chapter 5, and the liquidation 
or repatriation of such invested capital and of any profits therefrom. Ar ticle 205.2 provides that with 
regard to transactions on the capital and financial account of the balance of payments, from the 
entry into force of the Agreement and without prejudice to other provisions of the Agreement, each 
Party shall ensure the free m ovement of capital with regard to: (a) credits relating to commercial 
transactions, including the provision of services, in which a resident of one of the Parties is 
participating; (b) financial loans and credits by investors of the other Party; and (c) ca pital 
participation in a juridical person, with no intention of establishing or maintaining lasting economic WT/REG 405/1 
 
- 28 - 
 
  links. In Article 205.3 the Parties agree on a standstill (on a  no roll -back on restrictions on the 
movement of capital and current payments betwee n residents of the EU and Armenia) . 
4.6.  Article 207 concerns safeguard measures and provides that where, in exceptional 
circumstances, there are serious difficulties with regard to  the operation of exchange -rate policy or 
monetary policy (in the case of Armeni a), or, the operation of the economic and monetary union (in 
the case of the EU), or where a Party experiences serious balance of payments or external financing 
difficulties, or where there is the threat thereof, the Party concerned may take safeguard meas ures 
that are strictly necessary on capital movements, payments or transfers between the EU and 
Armenia for a period not exceeding one year. The Party adopting or maintaining safeguard measures 
is required to inform the other Party immediately of the adopt ion of any safeguard measure and 
present, as soon as possible, a time schedule for its removal.  
4.7.  Any Party maintaining or having adopted safeguard or restrictive measures , in case of serious 
balance -of-payments or external financial difficulties, or where t here is a threat thereof , shall 
promptly notify the other Party of them and present, as soon as possible, a time schedule for their 
removal . When restrictions are adopted or maintained under the Article, consultations shall be held 
promptly in the Partners hip Committee, if such consultations are not otherwise  taking place 
(Articles  374.5 and 374.6).  
4.3  Exceptions  
4.8.  Article 206 provides for exceptions to the current payments and capital movement obligations, 
including measures to protect public security, morals o r maintain public order, measures necessary 
to secure compliance with laws or regulations which are not inconsistent with the Agreement.  
4.9.  Article 207 permits the application of safeguard measures in certain circumstances 
(Section  3.4.4 above).  
4.4  Accession and withdrawal  
4.10.   According to the Parties t here are no provisions on accession to the Agreement.  
4.11.   Article 381 provides that the Agreement is concluded for an unlimited period. Either Party 
may denounce th e Agreement by means of a written notificati on delivered to the other Party. The 
Agreement would then be terminated six months from the date of receipt of such notification  
(Article  381.2) . 
4.5  Institutional framework  
4.12.   In Title VIII, Chapter 1, Articles 362 -366 the Parties set out the governance framewor k for 
the Agreement. In Article 362 they establish a Partnership Council, which will superv ise and regularly 
review the implementation of the Agreement (Article 362.1). It shall meet at least once a year 
(Article 362.2) and has the power to take decisions under the Agreement, as provided for therein. 
The Partnership Council also has the power to amend or update the Annexes to the Agreement.  
4.13.   Article 363 establishes the Partnership Committee, which assists the Partnership Council in 
the performance of its du ties and functions (Article 363.1). It is composed of representatives of the 
Parties, in principle at senior official level, chaired alternately by a representative of the EU and a 
representative of Armenia (Articles 363.2 and 3). The Partnership Committee  shall meet at least 
once a year (Article 363.4)  . The Partnership Committee has the power to adopt decisions in areas 
in which the Partnership Council has delegated powers to it and in the cases provided for in the 
Agreement  (Article 363.6) . According to the Parties, t he Partnership Council met the first time on 
21 June 2018 and the second time on 13 June 2019 (both in Brussels). The Partnership Committee 
met the first time in Yerevan on 27 November 2018 and the second time in Brussels on 16 December 
2019.  The Partnership Committee in Trade Configuration met the first time on 25 September 2018 
in Yerevan and the second time on 17 October 2019 in Brussels.  Two meetings of the Partnership 
Committee in Trade Configuration ha ve taken place as of 20 April 2020.  
4.14.   The Partnership Committee may be assisted by subcommittees and other bodies established 
under the Agreement. The Partnership Council may decide to set up subcommittees and other bodies WT/REG 405/1 
 
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  in specific areas (Article 364.2). According to the Parties there are six Armenia -EU subcommittees: 
on Justice, Freedom and Security, on Energy, Transport, Environment, Climate Action and Civil 
Protection, on Employment and Social Affairs, Public Health, Training, Education and Youth, Culture, 
Information Society, Audio visua l, Science and Technology ( 'People to People Contacts '), on 
Geographical Indications, on Customs, on Economic Cooperation and Other Related Sectors.  The 
Sub-Committee on Economic Cooperation and Other Related Sectors was established and met for 
the first t ime on 12 March 2019. The Sub -Committee on GI was established and met on October 
16th, 2019 in Brussels . A Parliamentary Partnership Committee is established under Article  365. The 
Committee consists of members of the European Parliament on the one hand and of members of the 
National Assembly of Armenia as a forum for them to meet and exchange views (Article 365.1). A 
civil society platform is established under Article 366.2. It  shall operate as a forum to meet and 
exchange views between representatives of civil society of the EU and the Republic of Armenia.  
4.15.   In Articles 370 the Parties agree that Armenia will carry out gradual approximation of its 
legislation to EU law as referre d to in the Annexes to the Agreement and in accordance with the ir 
provisions, without prejudice to any particular provisions of Title VI of the Agreement. Article 371 
on dynamic approximation provides that in view of the goal of gradual approximation of th e 
legislation of the Armenia to EU law, the Partnership Council shall periodically rev ise and update the 
Annexes to this Agreement in order,  inter alia , to reflect the evolution of EU law and applicable 
standards set out in international instruments deemed  relevant by the Parties, taking into account 
the completion of the ir respective internal procedures, without prejudice to any specific provisions 
under Title  VI. 
4.16.   Article 372  creates  a monitoring mechanism for the continuous appraisal of progress in 
implem enting and enforcing measures covered by this Agreement (Article 372.1). The EU shall 
assess the approximation of the legislation of the Armenia to EU law  (Article 372.2) . The 
assessments shall include aspects of implementation and enforcement  and may be c onducted either 
by the  EU or in agreement with Armenia. To facilitate the assessment process, Armenia shall provide 
reports to the EU on the progress made with regard to approximation. The reporting and assessment 
process, including the modalities and freq uency of assessments, shall take into account specific 
modalities laid down in this Agreement or decisions by the institutional bodies established by this 
Agreement. Such assessment of approximation may include on -the-spot missions, with the 
participation of institutions of the EU, bodies and agencies, non -governmental bodies, supervisory 
authorities, independent experts and others, as necessary  (Article 372.3) . 
4.17.   The monitoring and assessments of approximation conducted under Article 372, shall be 
discussed in the relevant bodies established under the Agreement, which may adopt joint 
recommendations to be submitted to the Partnership Council  (Article 373) . If the Pa rties agree that 
measures covered by Title VI have been implemented and are being enforced, the Partnership 
Council (under the powers conferred to it in Article 319.3 and Article 335.2, shall decide on further 
market opening where provided for in Title VI of the Agreement (Article 373.2). A joint 
recommendation or a failure to reach such a recommendation, shall not be subject to dispute 
settlement  under  Title VI  (Article 373.3) . According to the Parties they continuously monitor progress 
in implementing mea sures covered by the Agreement in the framework of the Partnership Committee 
and Sub -Committees. In December 2019, the Partnership Committee discussed progress with the 
implementation roadmap adopted by Armenia on 1 June 2019, which covers the parts of the  
Agreement that are provisionally applied.   
4.18.   CEPA implementation is regularly and thoroughly discussed at the annual meetings of the 
Armenia -EU Partnership Council, Partnership Committee (in General and Trade configurations) and 
thematic subcommittees. The meetings of Partnership Committee and the subcommittees result in 
agreeing operational conclusions with mutual commitments and actions to be fulfilled before the 
next meetings. Prior to the latest meeting of the Partnership Committee, the Armenian side sha red 
with the EU some detailed information about the implementation of those actions, which are present 
in the CEPA roadmap and have been envisaged for the years 2019 and 2020.  
4.6  Dispute settlement  
4.19.   Chapter 13  of Title VI , Articles 316 -342 concern dispute sett lement. Article 317 provides that 
the Chapter applies to any dispute concerning the interpretation and application of the provisions of 
Title VI on Trade and Trade -Related Matters.  WT/REG 405/1 
 
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  4.20.   In Article 318.1, the Parties agree to endeavour to resolve any dispute by  consultations with 
the aim of reaching a mutually agreed solution . Consultations shall take place by means of a written 
request to the other Party, copied to the Partnership Committee, identifying the measure at issue 
and the provisions of Title VI that i t considers applicable. Consultations shall be held within 30 days 
of the date of receipt of the request (Article 317.3) and take place in the territory of the Party to 
which the request is made. Consultations shall be deemed concluded within 30 days of th e date of 
receipt of the request, unless both Parties agree to continue consultations. All information disclosed 
and positions taken by the Parties during consultations shall be confidential and without prejudice 
to the rights of either Party in any furthe r proceedings. Consultations on matters of urgency, 
including those regarding perishable goods, seasonal goods or services or energy -related matters 
shall be held within 15 days of receipt of the request by the requested Party, and shall be deemed 
conclude d within those 15 days, unless both Parties agree to continue consultations (Article 318.4). 
Pursuant to Article 318.5, a Party that seeks consultations may instead have recourse to arbitration 
in accordance with Article 319 if consultation does not resolv e the matter.23  
4.21.   Article 319 provides for the possibility of mediation. A mediation mechanism is to be 
established and agreed by the Partnership Committee at its first meeting (Article 319.3).  In the 
event that a dispute is not resolved via consultations (or mediation) the procedures for dispute 
settlement are set out in Articles 320 -326. Where the Parties c annot resolve the dispute through 
consultations the Party that sought consultations can r equest (in writing describing the substance of 
the matter) the establishment of an arbitration panel (Article 320.1 and 2). An arbitration panel is 
then established pursuant to Article 321  and shall be composed of three arbitrators . Within 14 days 
of the w ritten request for establishment of an arbitration panel, the Parties shall consult to reach an 
agreement on the composition of the arbitration panel (Article 321.2).24 According to the Parties the 
rules of procedure of the mediation mechanism are still to be adopted . Also a ccording to the Parties  
the sub -lists of arbitrators and chairpersons were adopted during the meeting of the partnership 
committee in trade configuration on 17 October 2019 . 
4.22.   Article 322.1 provides for standard terms of reference for the a rbitration panel, unless the 
Parties agree otherwise  within five days from the date of selection of the arbitrators (the Parties 
should notify any agreed terms of reference to the arbitration panel within three days of their 
agreement (Article 322.2). A choice of forum provision is contained in Article 340.  
4.23.   Except in cases of urgency, the arbitration panel shall deliver an interim report to the Parties 
setting out the findings of fact, the applicability of relevant provisions and the basic rationale behind 
any findings and recommendations that it makes (Article 325.1). In urgent cases (including 
perishable goods, seasonal goods or services or energy related matters) the panel must prepare its 
interim report in less than 60 days (Article 325.2). The final rep ort of the panel shall be delivered to 
the Parties and the Partnership Committee within 120 days (75 days for urgent matters) per 
Articles  326.1 and 2.25 
4.24.   Procedures concerning compliance with the final report of the panel are set out in Articles  327-
331. Ar ticle 327 provides that the Party complained against shall take the necessary measures to 
comply promptly and in good faith with the final report of the arbitration panel to bring itself into 
compliance with the provisions of this Title. Article 328 concer ns a reasonable period of time for 
 
23 The conditions in Article 318.5 are that: (a) the Party to which the request is made does not respond 
to the request for consultations within 10 days of its receipt; ( b) consultations are not held within the 
timeframes laid down in paragraph 3 or 4 of this Article; (c) the Parties agree not to have consultations; or (d) 
consultations have been concluded and no mutually agreed solution has been reached.  
24 If the Parties cannot agree on the composition of the arbitration panel within 14 days, each Party 
shall, within five days appoint an arbitrator from that Party's sub -list established pursuant to Article 339. If 
either Party fails to appoint an arbitrator, one shall be s elected by lot by the chairperson of the Partnership 
Committee, from the sub -list of that Party established pursuant to Article 339.  If the Parties are unable to 
reach an agreement on appointment of a chairperson of the arbitration panel within 14 days, th e chairperson 
of the Partnership Committee or the chairperson's delegate shall, upon the request of either Party, select the 
chairperson of the arbitration panel from the sub -list of chairpersons established pursuant to Article 339 within 
five days of any request from the Parties to do so (Article 321.4  and 5).  
25 The arbitration panel may seek information and opinions as it deems appropriate, and may receive 
amicus curiae briefs per Article 336. Article 338 provides that the arbitration panel shall interpre t the provisions 
of the Title in accordance with customary rules of interpretation of public international law, including those 
codified in the Vienna Convention on the Law of Treaties of 1969. The arbitration panel may also take into 
account relevant inte rpretations in reports of WTO panels and of the Appellate Body adopted by the WTO 
Dispute Settlement Body . WT/REG 405/1 
 
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  compliance. Article 328.1 provides that if immediate compliance is not possible, the Parties shall 
endeavour to agree on the period of time necessary for compliance with the final report, and in such 
a case, the Party com plained against shall, no later than 30 days after receipt of the final report, 
deliver a notification to the complaining Party and the Partnership Committee of the time it will 
require for compliance ( 'reasonable period of time '). If there is no agreement  between the Parties 
as to the duration of the reasonable period of time, the complaining Party may, within 20 days of 
receipt of the notification referred to in paragraph 1, deliver a request in writing that the original 
arbitration panel determine the le ngth of the reasonable period of time (Article 328.2). The 
reasonable period of time may be extended by mutual agreement between the Parties 
(Article  328.4).  
4.25.   In the event of non -compliance by the responding Party with a final report, Article 330 permits 
the complaining Party to take temporary remedies. If the Party complained against fails to notify a 
measure taken to comply with the final report of the arbitration panel before the expiry of the 
reasonable period of time, or if the arbitration panel rules t hat no such measure exists or that the 
measure notified is inconsistent with that Party's obligations, the Party complained against shall, if 
so requested by the complaining Party and after consultations with that Party, present an offer for 
temporary comp ensation (Article 330.1). In Articles 330.2 -4 the Parties set out the process for 
review of temporary compensation measures. Article 331 concerns the review by the Partnership 
Committee of any measure taken to comply after the adoption of temporary remedie s for 
non-compliance.  
4.26.   Under Article 334.1 the Parties may reach a mutually agreed solution to a dispute under this 
Chapter at any time. Dispute settlement under the Chapter is subject to rules of procedure and a 
code of conduct (adopted by the Partnership Committee) as provided by Article 335. According to 
the Parties, the rules of procedure and code of conduct for dispute settlement have not been adopted 
by the Partnership Committee yet .  
4.27.   Article 342 provides for the arbitration panel to refer t he Court of Justice of the EU to give a 
ruling on a question of interpretation of a provision of European Union law  in the context of disputes 
relating to specific approximation provisions , when this is necessary for the decision of the arbitration 
panel, and any such ruling will be binding upon the arbitration panel (Article 342.1 and 2).  
4.28.   With regard to trade and sustainable development (Chapter 9), Article 285 modifies the 
dispute settlement procedure in Chapter 13 for disputes under Chapter 9, resulting  in the final report 
of an arbitration panel subject to discussion and review by the Partnership Committee.  
4.7  Relationship with other agreements concluded by the Parties  
4.29.   Table 4.1 below shows the Parties' other RTAs (including those in force and not notified) , as 
of 22 June 2020.  
Table 4.1 European Union and Armenia: Participation in RTAs (notified and non -notified 
in force), as of 22 June 2020  
RTA Name  Date of 
entry int o 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EUROPEAN UNION  
EU – Singapore  21-Nov-19 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
EU – Japan  01-Feb-19 Goods & 
Services  2019 GATT Art. XXIV & GATS Art. V  
EU – Canada  21-Sep-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru - 
Accession of Ecuador  01-Jan-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
EU – Ghana  15-Dec-16 Goods  2017 GATT Art. XXIV  
EU – SADC  10-Oct-16 Goods  2017 GATT Art. XXIV  
EU - Côte d'Ivoire  03-Sep-16 Goods  2008 GATT Art. XXIV  
EU – Georgia  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  WT/REG 405/1 
 
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  RTA Name  Date of 
entry int o 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EU - Republic of Moldova  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU – Cameroon  04-Aug-14 Goods  2009 GATT Art. XXIV  
EU – Ukraine  23-Apr-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Central America  01-Aug-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru  01-Mar-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Eastern and Southern 
Africa States Interim EPA  14-May-12 Goods  2012 GATT Art. XXIV  
EU - Republic of Korea  01-Jul-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EU – Serbia  01-Feb-10 
01-Sep-13 Goods  
Services  2010 
2013 GATT Art. XXIV  
GATS Art. V  
EU - Papua New Guinea / 
Fiji 20-Dec-09 Goods  2011 GATT Art. XXIV  
EU - CARIFORUM States EPA  29-Dec-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
EU - Bosnia and 
Herzegovina  01-Jul-08 
01-Jun-15 Goods  
Services  2008 
2016 GATT Art. XXIV  
GATS Art. V  
EU – Montenegro  01-Jan-08 
01-May-10 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
EU – Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
EU – Algeria  01-Sep-05 Goods  2006 GATT Art. XXIV  
EU – Egypt  01-Jun-04 Goods  2004 GATT Art. XXIV  
EU – Lebanon  01-Mar-03 Goods  2003 GATT Art. XXIV  
EU – Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
EU – Jordan  01-May-02 Goods  2002 GATT Art. XXIV  
EU - San Marino  01-Apr-02 Goods  2010 GATT Art. XXIV  
EU - North Macedonia  01-Jun-01 
01-Apr-04 Goods  
Services  2001 
2009 GATT Art. XXIV  
GATS Art. V  
EU – Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV 
GATS Art. V  
EU – Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
EU – Morocco  01-Mar-00 Goods  2000 GATT Art. XXIV  
EU - South Africa  01-Jan-00 Goods  2000 GATT Art. XXIV  
EU – Tunisia  01-Mar-98 Goods  1999 GATT Art. XXIV  
EU - Palestinian Authority  01-Jul-97 Goods  1997 GATT Art. XXIV  
EU - Faroe Islands  01-Jan-97 Goods  1997 GATT Art. XXIV  
EU – Turkey  01-Jan-96 Goods  1995 GATT Art. XXIV  
European Economic Area 
(EEA)  01-Jan-94 Services  1996 GATS Art. V  
EU – Andorra  01-Jul-91 Goods  1998 GATT Art. XXIV  
EU – Syria 01-Jul-77 Goods  1977 GATT Art. XXIV  
EU – Norway  01-Jul-73 Goods  1973 GATT Art. XXIV  
EU – Iceland  01-Apr-73 Goods  1972 GATT Art. XXIV  
EU - Switzerland – 
Liechtenstein  01-Jan-73 Goods  1972 GATT Art. XXIV  
EU – Overseas Countries 
and Territories (OCT)  01-Jan-71 Goods  1970 GATT Art. XXIV  
EU – Kosovo  01-Apr-16 Goods  Not notified  
ARMENIA  
EAEU – Iran 27-Oct-19 Goods  2020 GATT Art. XXIV  
EAEU - Viet Nam  05-Oct-16 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
EAEU - Accession of the 
Kyrgyz Republic  12-Aug-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
EAEU - Accession of Armenia  02-Jan-15 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  WT/REG 405/1 
 
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  RTA Name  Date of 
entry int o 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Eurasian Economic Union 
(EAEU)  01-Jan-15 Goods  2014 GATT Art. XXIV & GATS Art. V  
Treaty on a Free Trade Area 
between members of the 
Commonwealth of 
Independent States (CIS)  20-Sep-12 Goods  2013 GATT Art. XXIV  
Armenia – Kazakhstan  03-Jan-02 Goods  2004 GATT Art. XXIV  
Armenia - Georgia  11-Nov-98 Goods  2001 GATT Art. XXIV 
Armenia – Ukraine  18-Dec-96 Goods  2004 GATT Art. XXIV  
Armenia - Turkmenistan  07-Jul-96 Goods  2004 GATT Art. XXIV  
Armenia – Republic of 
Moldova  21-Dec-95 Goods  2004 GATT Art. XXIV  
Armenia – Kyrgyz Republic  27-Oct-95 Goods  2000 GATT Art. XXIV  
Armenia - Belarus  28-Jul-03 Goods  Not notified  
Armenia – Tajikistan  20-Jul-94 Goods  Not notified  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  
 
4.8  Government procurement  
4.30.   In Cha pter 8 of Title VI , Articles 269 -271, as well as Annex XI to the Agreement, the Parties 
have undertaken obligations in public procurement. In Article 269 the Parties affirm their mutual 
rights and obligations under the WTO Revise d Agreement on Government P rocurement of 2012 
(GPA). The Parties commitments under Appendix I of the GPA are made part of the Agreement and 
are also subject to its dispute settlement provisions under Chapter 13  of Title VI .  
4.31.   Annex XI lists additional (in comparison to the Parties GP A commitments) covered public 
procurement. For the EU this adds to its GPA commitments works concession contracts covered 
under Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on 
the award of concession contracts, as amended, when awarded by an entity listed in the EU's 
Annexes 1 and 2 to Appendix I to the WTO Government Procurement Agreement under the regime 
of that Directive. According to the Annex this regime complies with Articles I, II, IV, VI, VII (except 
points 2 (e) and 2 (l)), XVI (except paragraphs 3 and 4) and XVIII of the WTO Government 
Procurement Agreement. Armenia has added concession contracts covered under the regime of the 
Law on Public Procurement, when awarded by an entity listed in Armenia's Annexes  1 and 2 to 
Appendix I to the WTO Government Procurement Agreement.   
4.32.   Article 270 allows the Partnership Committee to amend and consider expansion of the 
additional commitments set out in Annex XI. The Parties also agr eed to additional disciplines on 
public  procurement, such as electronic publication of procurement notices and requirements for 
review procedures, standstill period, ineffectiveness and non -discrimination for established 
companies  (Article 271) . The Parties have confirmed that there is  no difference between the 
Agreement and the GPA in terms of the Parties' thresholds for p rocurement.  
4.9  Intellectual property rights  
4.33.   Chapter 7 of Title VI  concerns intellectual property rights. In Article 210 the Parties restate 
their commitment to the adequate and effective implementation of international treaties concerning 
intellectual property including the WTO TRIPS Agreement. The Chapter expressly complements and 
further spe cifies the rights and obligations of both Parties under the TRIPS Agreement and other 
international treaties in the field of intellectual property. In Article 211 the Parties agree to provide 
for a regime of national or regional exhaustion of intellectual property rights.  
4.34.   The Chapter covers copyright and related rights in subsection I. The Parties recite the 
governing international treaties on copyright in Article 212. The y agree to provide for the exclusive 
rights of authors on reproduction, distribution,  communication, and rental and lending (Article 213). 
They also agree to provide for exclusive rights of performers (Article 214), producers of phonograms WT/REG 405/1 
 
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  (Article 215), and broadcasting organisations (Article 216). The terms of protection for authors26, 
performers and producers of phonograms, producers of the first fixation of films and broadcasting 
organisations are set out in Article 218 , both 50 years (as under the TRIPS Agreement) .27 In 
Article  222 the Parties agree to provide for the benefit of the auth or of an original work  of art , an 
inalienable resale right to receive a royalty based on the sale price obtained for any resale of the 
work, subsequent to the first transfer of the work by the author.  
4.35.   Trademarks are covered by subsection II, Articles 224 -229. The Parties recite the relevant 
international agreements in Article 224. Article 225 lists the exclusive rights provided to the 
proprietors of registered trademarks. The Agreement does not describe the term of protection for 
trademarks. Obligations on  registration procedures are contained in Article 226. The Parties agreed 
to ensure the protection of well -known trademarks and implementation of relevant treaties in 
relation thereto in Article 227.  
4.36.   In subsection III Articles 230 -24028 the Parties agree on obligations regarding geographical 
indications  (GIs). Each Party  agree s that the legislation of the other Party (set out in Part A of Annex 
IX) meets the elements set out in Part B of Annex IX (Articles 231.1 and 2). The Parties have also 
completed an ob jection procedure and examined the other Party's GIs listed in Annex X to the 
Agreement ; they  agree to protect those GIs in accordance with the level of protection laid down in 
the Agreement. The scope of protection of GIs listed in Annex X is laid out in Article 233. Article  235 
describes the relationship between GIs and the registration of trademarks, including the revocation 
of trademarks that impinge upon the GIs listed in Annex  X.  
4.37.   The Parties agree to enforce the protection of GIs through appropriate administrative action 
by their public authorities . Each Party will also enforce such protection at the request of an interested 
person. A transitional regime for products produced in conformity with domestic law prior to the 
entry into force of the Agreement is set out in Article 237.  
4.38.   Article 240 creates a  Sub-Committee on Geographical Indications to monitor the 
implementation of the subsection and to intensify  cooperation and dialogue on GIs. The Sub -
Committee on GIs met for the first time on 16 October 2019 . 
4.39.   Registered designs are the subject of subsectio n IV, Articles 241 -245. The Parties agree to 
adhere to the Geneva Act of 1999 of the Hague Agreement Concerning the International Registration 
of Industrial Designs. Minimum levels of protection of regist ered designs are provided in Article 242. 
The protec tion afforded unregistered designs is listed in Article 243. The availability of copyright 
protection for a design is noted in Article 245.  
4.40.   Patents are covered in subsection V, Articles 246 -248. The Parties agree to adhere to the 
Patent Cooperation Treaty and make all reasonable attempts to comply with the Patent Law Treaty 
(Article 246). The y restate their commitment to the Declaration on the TRIPS Agreement and Public 
Health adopted on 14 November 2001 by the Ministerial Conference of the WTO, and the Dec ision 
of the WTO General Council of 30 August 2003 on Implementation of Paragraph 6 of the Doha 
Declaration on the TRIPS Agreement and Public Health (Article 247). Additional periods of protection 
for medicinal and plant protection products covered by pate nts are provided for in Article  248; any 
additional period of protection provided may not exceed 5 years (Article 248.3).  
4.41.   Subsection VI, Articles 249 -252 concern s undisclosed information, including trade secrets and 
undisclosed information. The scope of p rotection provided for under the Agreement is described and 
the Parties affirm their commitments under Article 39 of the TRIPS Agreement in Article 249.1. An 
illustrative list of types of conduct considered contrary to honest commercial practice are set ou t in 
Article 249.3. The Parties have agreed provisions concerning protection of trade secrets information 
in civil judicial proceedings as well as obtaining of injunctive relief by rights holders (Article 250. 2). 
Protection of commercially confidential dat a submitted to obtain an authorisation to place a medicinal 
 
26 Also protected under Article 218.7.  
27First time publication of a previously unpublished work following the lapse of original protection is 25 
years . The economic rights of audio -visual performers are exclusive for 50 years from the date of the 
performance.  Economic rights of producers of the first fixation of a  film expire 50  years after the fixation is 
made. Economic rights of broadcasting organisa tions expire not less than 50 years after the first transmission 
of a broadcast, whether that broadcast is transmitted by wire or over the air, including by cable or satellite.  
28And Annexes IX and X to the Agreement.  WT/REG 405/1 
 
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  product on the market is provided for in Article 251. Plant protection products are similarly covered 
by Article 252.  
4.42.   In Subsection VII, Article 253 the Parties have agreed to protect plant varie ty rights in 
accordance with the International Convention for the Protection of New Varieties of Plants ("UPOV"). 
Section C, Articles 254 -265, deal with enforcement  of intellectual property rights , including civil 
enforcement, border enforcement, and other  enforcement measures.  
4.10  Competition  
4.43.   Chapter 10, Section A, Articles 286 -289 concern competition. The Parties recogn ize the 
importance of free and undistorted competition in their trade and investment relations  and 
acknowledge that anti -competitive business  practices and State interventions have the potential to 
distort the proper functioning of markets and undermine the benefits of trade liberalization 
(Article  286). Section B concerns antitrust and mergers, with Article 287 describing minimum 
requirements for the legislative framework (Article 287.1). All enterprise s, both private and public 
are to be subject to the competition law described in Article 287.1 (Article 287.2).  The Parties have 
agreed that each shall maintain operationally independent authorit ies responsible for and 
appropriately equipped with powers and resources needed to ensure the full application and effective 
enforcement of the competition law (Article 288.1). The Parties agree to enhance and continue 
cooperation on the development of com petition policy and the investigation of antitrust and merger 
cases, including , where possible and appropriate, through coordination of their enforcement 
activities on the same or related cases (Article 289).  
4.44.   With regard to subsidies which cover both goods  and services, the  principles are recited in 
Article 290, where the Parties note that although subsidies may have a legitimate and useful public 
policy objective, certain subsidies have the potential to distort the proper functioning of markets and 
undermi ne the benefits of trade liberalization. Article 291 sets out the scope of and definitions used 
in the section, with a subsidy defined as a measure which fulfils the conditions set out in Article 1.1 
of the WTO Agreement on Subsidies and Countervailing Mea sures, contained in Annex 1A to the 
WTO Agreement ( 'SCM Agreement '), irrespective of whether it is granted to an enterprise  supplying 
goods or services.  A subsidy will only be subject to the Chapter if it is specific in accordance with 
Article 2 of the SCM  Agreement. Article 292 provides that the provisions of the Chapter a re without 
prejudice to the rights and obligations of each Party under Article XV of GATS, Article XVI of GATT 
1994, the SCM Agreement and the Agreement on Agriculture.  
4.45.   Each Party has also undertaken obligations to notify the other Party of the legal basis, form, 
amount or budget and if possible the recipient of subsidies, every 2 years. Such notification shall , 
however,  be deemed to have been fulfilled if the relevant in formation is made available on a publicly 
accessible website  or if it is notified under the SCM Agreement  (Article 293). Subsidies falling within 
Article 295 are deemed to be specific (Article 291.2). Subsidies granted to either the private or public 
secto r are subject to the Chapter (Article 291.3).  
4.46.   Article 294 provides for a Party to request consultations with the other Party i f it considers 
that of a subsidy granted by the other Party could negatively affect its interests . Article 295 concerns 
condition al subsidies that are allowed under certain conditions. This concerns (a) a legal 
arrangement whereby a Government, directly or indirectly, is responsible for covering debts or 
liabilities of certain enterprises, provided that the coverage of the debts and  liabilities is limited as 
regards the amount of those debts and liabilities or the duration of such responsibility (Article 
295(a)) and (b) subsidies to insolvent or ailing enterprises (including loans and guarantees, cash 
grants, capital injections, the provision of assets below market prices, and tax exemptions) with a 
duration of more than one year are allowed, provided that a credible restructuring plan had been 
prepared with a view to ensuring the return of the insolvent or ailing enterprises to long -term viability 
within a reasonable time and with the enterprise contributing to the costs of restructuring. Article 
294 does not apply to the agriculture sector (Article 291.4) and Articles 294 and 295 do not apply 
to the audio -visual sector (Article 291.5 ).  
4.47.   Chapter 11, Articles 300 -306 concern State owned enterprises (SOEs). E ach Party shall 
ensure that any enterprise , including a  SOE, an enterprise  granted delegated authority in terms of 
special rights or privileges, or a  designated monopoly, that has be en delegated regulatory, 
administrative or other governmental authority by a  Party at any level of Government, acts in WT/REG 405/1 
 
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  accordance with the Party's obligations as set out under th e Agreement in the exercise  of that 
authority  (Article 300) . In Article 302 th e Parties confirm their rights and obligations under Article 
XVII paragraphs 1 to 3 of GATT 1994, the Understanding on the Interpretation of Article XVII of 
GATT 1994, as well as under Article VIII paragraphs 1, 2 and 5 of GATS . However, the  Chapter does 
not apply to any service supplied in the exercise  of governmental authority within the meaning of 
the GATS  (Article 302.5) . 
4.48.   Without prejudice to the Parties' rights and obligations under th e Chapter,  nothing in it 
prevents the Parties from establishing or m aintaining State -owned enterprise s, designating or 
maintaining monopolies or granting enterprise s special rights or privileges  (Article 303.1) . 
4.49.   The Parties agree in Article 304.1 to ensure that SOEs, designated monopolies and enterprise s 
granted special ri ghts or privileges when engaging in commercial activities act in accordance with 
commercial considerations in their purchase or sale of goods or services, and accord to goods or 
services supplied by enterprise  of the other Party treatment no less favourabl e than they accord to 
like goods or like services supplied by enterprise s, enterprise s of the other Party established in its 
territory.   
4.50.   The Parties have agreed principles by which SOEs exercising regulatory functions must comply 
with in Article 305.  
4.51.   If a Party considers its interests under the Chapter are being adversely affected by the 
commercial activities of an enterprise  specified in Article  300 of the other Party, and subject to the 
scope of this Chapter, it may request in writing that the other Part y provide information about the 
operations of that enterprise  related to the activities covered by th e Chapter  (Article 306).  
4.11  Environment  and labour  
4.52.   Chapter 9  of Title VI , Articles 272 -285 concern trade and sustainable development. The 
Parties state their commitment to a number of international agreements and treaties (Article 272.1). 
They also  reaffirm their commitment to pursue sustainable development,  and state that  the pillars 
of sustainable development  — economic development, social development and environmental 
protection — are interdependent and mutually reinforcing. The  Parties consider that this underline s 
the benefit of considering trade -related labour and environ mental issues as part of a global approach 
to trade and sustainable development.  In Article 273 the Parties recogn ize the right of each to 
determine its sustainable development policies and priorities, to establish its own levels of domestic 
environmental and labour protection, and to adopt or modify its relevant laws and policies, consistent 
with its commitment to the internationally recogn ized standards and agreements referred to in 
Articles  274 and  275. The Parties agree to strive to ensure that their laws and policies provide for 
and encourage high levels of environmental and labour protection and commit to  strive to continue 
to improve those laws and policies and their underlying levels of protectio n. 
4.53.   The Parties also confirm their commitment to enhance  the contribution of trade to the goal of 
sustainable development in its economic, social and environmental dimensions and have set out 
principles reflecting that statement in Article 276(a) -(e). They restate their commitment to 
international conventions o n biological diversity, and agree to cooperate in promoting those 
objectives in Article 277.2. Article 278 reflects the Parties commitments to ensuring the conservation 
and sustainable management of forests and contribution of forests to the Parties ' econo mic, 
environmental and social objectives, and Article 279 similarly concerns sustainable management of 
fish stocks. The Parties commit to work together on trade and sustainable development in the 
international arena, including in the WTO, ILO, UNEP, UNDP a nd multilateral environmental 
agreements  (Article 284) . Article 285 modifies the dispute settlement procedure in Chapter 13 for 
disputes under Chapter 9, resulting in the final report of an arbitration panel being subject to 
discussion and review by the Pa rtnership Committee. Provisions on environment and climate change 
are also found in other Titles of the Agreement.29 
 
29 In Title V  (Other Cooperation Policies) , Chapter 3, Articles 45 -50 the Parties agree to develop and 
strengthen cooperation on environmental issues  thereby contributing to the long -term objective of sustainable 
development and greening the economy (Article 45). The ir cooperation is to aim at preserving, protecting, 
improving and rehabilitating the quality of the environment, protecting human health, utilising natural 
resources in a sustainable manner and promoting measures at international level to address regional or  global WT/REG 405/1 
 
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  4.54.   In Article 274.1 t he Parties recogn ize full and productive employment and decent work for all 
as key to managing globalization, and reaffirm their commitment to the development of international 
trade in a way that is conducive to full and productive employment and decent work for all. They 
agree to consult and co -operate with each other on trade -related labour issues of mutual interest.   
4.55.   The Parties also restate their commitment to the ILO and the ILO Declaration on Fundamental 
Principles and Rights at Work and its Follow -up of 1998,  and to cor e labour standards, embodied in 
ILO conventions and protocols .30 They agree also to implement in their laws and practices ILO 
conventions  and protocols that have been ratified by the EU Member States and Armenia 
(Article  274.3), and to consider ratification  of the remaining priority and other conventions that are 
classified as up -to-date by the ILO  and to regularly exchange information on their respective 
situations and progress in the ratification process.  (Article 274.4). In Article 274.5 t he Parties 
recog nize that the violation of fundamental principles and rights at work cannot be used as a 
legitimate comparative advantage and that labour standards will not to be used for protectionist 
trade purposes.  
Electronic Commerce  
4.56.   Section F of Chapter 5,  Articles 193 -199 concern electronic commerce. The objectives and 
principles of the section appear in Article 193. Article 194 is a rendezvous clause for the discussion 
of regulation of electronic signatures, and the liability of intermediary service provid ers with respect 
to several matters, including unsolicited electronic commercial communications ("spam") and the 
protection of consumers in the ambit of electronic commerce.  
4.57.   In subsection 2  (Articles 195 -199), the Parties recognize that the services of in termediaries 
can be used by third parties for activities infringing their respective domestic laws. The Parties have 
accordingly agreed to adopt or maintain liability measures for intermediary service providers 
(Article  195), acting  as a "mere conduit" (Ar ticle 196), "caching" (Article 197), and "hosting" (Article 
198).  
4.13  Small and medium -sized enterprise s 
4.58.   In Chapter 5 of Title V, other cooperation policies,  the Parties  agree to develop and strengthen 
cooperation on industrial and enterprise  policy, with a v iew to improving the business environment 
for all economic operators, but with particular emphasis on SMEs. Enhanced cooperation should be 
based on the SME and industrial policies of the  EU, taking into account internationally recogn ized 
principles and practices in that field. In Article 58 the Parties agree to cooperate in order to: (a) 
implement strategies for SME development, based on the principles of the Small Business Act for 
Europe, and monitoring of the implementation process throu gh regular reporting and dialogue, (b) 
create better framework conditions, via the exchange of information and good practice, thereby 
contributing to improved competitiveness, including the management of structural changes 
(restructuring) and environmental  and energy issues, such as energy efficiency and cleaner 
production; (c) simplify and rational ize regulations and regulatory practice, with a specific focus on 
the exchange of good practice on regulatory techniques, including the principles of the  EU; 
(d) encourage the development of innovation policy, via the exchange of information and good 
practice regarding the commercialisation of research and development (including support 
instruments for technology -based business start -ups), cluster development and access to finance; 
(e) encourage greater contacts between businesses of the EU and businesses of Armenia, and 
between those businesses and the authorities of the EU and Armenia; (f) support the establishment 
of export promotion activities in Armenia; (g) p romote a more business -friendly environment, with 
a view to enhancing growth potential and investment opportunities; and (h) facilitate the 
modernisation and restructuring of industry in the EU and in Armenia in certain sectors.  
 
environmental problems. A number of such problem areas are listed for cooperation in Article 46.1. Articles 47 
and 48 set out additional cooperation obligations in the environmental sphere. In Article 50 Armenia has 
agreed to carry out approximatio n of its legislation to the Acts of the EU and international instruments referred 
to in Annex III in accordance with the provisions of that Annex. In Chapter 4, Articles 51 -56 the Parties agree 
to cooperate on combatting climate change.  
30 They in particula r reference (a) freedom of association and the effective recognition of the right to 
collective bargaining;  (b) elimination of all forms of forced or compulsory labour;  (c) effective abolition of child 
labour; and  (d) elimination of discrimination in respect of employment and occupation  (Article 274.2) . WT/REG 405/1 
 
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  4.59.   The Parties agree to undert ake a regular dialogue on the issues covered in the Chapter, 
including representatives of businesses from the EU and Armenia (Article 59) . 
__________